The Centre is set to cut annual budgetary expenditure for current fiscal by nearly Rs.2.2 lakh crore or 8 per cent from the Budget Estimate.
With tax revenue growth lagging the required rate by a wide margin, the Centre is all set to cut the annual budgetary expenditure for the current financial year by nearly Rs 2.2 lakh crore or 8 per cent from the Budget Estimate (BE). The axe could fall on spending across most ministries, though budgeted capital investment may remain intact.
With actual expenditure this year likely to be around Rs 25.6 lakh crore, or 92 per cent of the BE, the spending reduction from BE level this year could be the sharpest since FY15, when the new Modi 1.0 government retained the (slashed) expenditure level of 92.7 per cent of BE estimated by the previous UPA government in the interim budget.
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