Govt expenditure likely to over-shoot by 21%: CMIE
Interest payment, which is the largest expenditure head of the government, accounted for 25% of total expenditure during April and May. Invest during inflation?
By PTI |
MUMBAI: The Union Government expenditure is expected to over-shoot by a whopping 21 per cent this fiscal, a Centre for Monitoring Indian Economy (CMIE) report said.
Firming up of interest rates on Government debt papers, outgo on account of the Sixth Pay Commission's recommendations and farmers' debt relief package besides additional subsidies on petroleum and fertiliser products are likely factors that could push up the expenditure, the report said.
For 2008-09, total expenditure is budgeted at Rs 7,50,884 crore, an increase of 5.2 per cent over the actual planned expenditure in 2007-08.
The total Government expenditure, including expenditure on debt relief package and outgo on account of the Sixth Pay Commission's recommendations for 2008-09 stands at Rs 7,81,448 crore, the CMIE report said.
| | | Also Read |
| | �� | |
| | �� | |
| | �� | |
| | �� | |
| | �� |
"Additional subsidies for fertilisers and petroleum products add up to Rs 1,30,000 crore. This amount and the impact of the Sixth Pay Commission and debt relief package may push up the total expenditure to Rs 9,11,448 crore during 2008-09," the report said.
Interest payment, which is the largest expenditure head of the Central Government, accounted for 25 per cent of total expenditure during April and May, CMIE said.
At Rs 27,229 crore, it was up by 3.8 per cent over the payments made in the corresponding months of 2007, the report said.
In the first three months of the current fiscal, the report said, interest rates on treasury bills have gone up by 1.5-1.97 percentage points, adding that, "this would lead to a higher outgo in the form of interest payments."
Also, during the April-May period, Central Government's expenditure was up by 20 per cent as against a 1.3 per cent decline recorded in the corresponding period of the previous fiscal, CMIE report said.
ADVERTISEMENT
At Rs 1,09.485 crore, it was 14.6 per cent of the budget estimates for the year, the report said, adding, "plan expenditure witnessed a healthy 64 per cent increase and non-plan expenditure was up by 5.7 per cent."
Increase in plan expenditure reflects a surge in expenditure by Ministry of Health and Family Welfare, Rural Development, and Road Transport and Highways, the report said.
These ministries/departments accounted for Rs 20,219 crore of the total expenditure during April-May as against Rs 8,043 crore in the corresponding months of the previous financial year, CMIE said.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
