The government has established a capital expenditure (capex) target of Rs 10 lakh crore ($134 billion) for the current fiscal year, marking a significant 36% increase from the previous year’s target. This information was revealed by an anonymous official who also disclosed that over half of this amount had already been expended by the end of October.
In the last fiscal year, the government spent Rs 7.36 lakh crore, falling slightly short of its Rs 7.5 lakh crore target. Between April and August 2023, approximately 37.4% of the budgetary capex was spent. The official expressed confidence in achieving the fiscal deficit target of 5.9% GDP and following a glide path to reduce it to under 4.5% by FY26.
By August, revenue receipts and expenditures stood at Rs 10.13 lakh crore and Rs 13 lakh crore respectively, accounting for 39% and 37% of budget estimates respectively.
Pre-budget consultations with various ministries commenced in October, with discussions on a total of 102 demands expected to conclude by mid-November. The government’s coffers have been significantly boosted by the Mahila Samman Savings Scheme and Senior Citizens Scheme, which added Rs 13,512 crore and Rs 74,675 crore respectively by the end of September. The latter represents a substantial 160% annual jump from last year’s collections.
Despite this boost in small savings, the government has stuck to its borrowing plan for FY24, announcing that it would borrow Rs 6.55 lakh crore or 42.45% of the total Rs 15.43 lakh crore budgeted for the second half of the year.
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