Central Govt expenditure to rise by 26 pc in FY 09: CMIE
The Central Government's expenditure is set to rise by 26 per cent in FY 09, a leading think-tank said in its monthly review in Mumbai.india Updated: Feb 08, 2009 11:20 IST
The Central Government's expenditure is set to rise by 26 per cent in FY 09, a leading think-tank said in its monthly review in Mumbai.
Following a spurt in subsidies in fertiliser and food, the Government's budgeted expediture for 2008-09 stands revised upward at Rs 8,98,976-crore from Rs 7,50,884-crore budgeted in February 2008, the Centre for Monitoring Indian Economy, said.
The two supplementary demands for grants of Rs 1,05,612-crore and Rs 42,480-crore approved by Parliament in October and December, respectively, pushed up the Government expenditure in FY 09.
The revised expenditure is 19.7 per cent higher than the budget estimates and 26 per cent more than the actual expenditure in FY 08. The 26 per cent increase is the highest- ever in a year, at least since 1980-81.
As a percentage of GDP, expenditure for FY 09 works out to 16.5 per cent. This ratio is the highest in the recent five years. Earlier in FY 03 and FY 04, this ratio had reached 16.8 per cent and 17.1 per cent, respectively, CMIE said.
Factors that led to the spike in Central Government's expenditure in FY 08 include a spurt in subsidy on fertiliser and food, implementation of the Sixth Pay Commission recommendations, debt-waiver scheme for farmers and the stimulus packages for the economy, CMIE said.