Govt revenue expenditure rises, capex slows in first two months of fiscal year
Fiscal deficit was higher by `20,362 crore in April-May this year compared to the year-ago period
It’s early days yet, but as the chart shows, the fiscal deficit was higher by ₹ 20,362 crore in April-May this year compared to the same period of the previous year. What contained the deficit was the smart rise in tax receipts, particularly income tax and excise duties. The chart shows that revenue expenditure has been much higher this fiscal so far. On the other hand, capital expenditure has come down a bit.
The ministry of rural development has seen much higher levels of spending in the first two months of the current year compared to a year ago, possibly on account of higher expenditure to alleviate rural distress. Plan expenditure on agriculture too has increased substantially.
What will be interesting, however, is how this picture changes once the pay hike for central government employees is disbursed.
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