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indian government | Finance Ministry | government borrowing
BS Web Team |
Last Updated at October 5, 2022 11:08 IST
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The central government will likely save around Rs 80,000 crore in the current financial year as various ministries and departments have underutilised allocated funds because of tardy spending by states under some of the Centrally Sponsored Schemes (CSS), reported The Economic Times (ET) on Wednesday.
The government will save more than 2 per cent on the Rs 39.4 trillion budget. This will give the Centre some fiscal room to absorb any additional demand, and help stay within the targeted fiscal deficit of 6.4 per cent of GDP, the report stated.
"Savings from unused funds would be about Rs 80,000 crore, which will make up for additional expenditure," a senior government official told ET. According to the official, the Centre will also save money on lower wheat procurement.
The government spent 35.2 per cent of the budget for this fiscal year by the end of August, and it spent less than 36.7 per cent of the FY22 budget last year at the same stage.
The Union finance ministry will soon start discussions on the FY24 budget and on the revised estimates for the current fiscal year with ministries and departments. According to the ET report, the Centre will only provide additional funds if allocations fall short.
From April to August, some ministries spent significantly less on their allocated fund. According to the data from the Comptroller General of Accounts, the Ministry of Civil Aviation spent just four per cent of its Rs 10,667 crore FY23 allocation by August, while the Ministry of Petroleum & Natural Gas spent 5 per cent. It was followed by the Department of Pharmaceuticals at 7 per cent and the Ministry of Women and Child Development at 6 per cent, reported Livemint.
The government last Thursday slashed its market borrowing target for FY23 by Rs 10,000 crore, indicating buoyant tax collections which would be enough to bear Rs 44,762 crore additional expense on free ration distribution. The market borrowing for the second half is now pegged at Rs 5.92 trillion.
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First Published: Wed, October 05 2022. 11:08 IST
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