Government Spending

The rate in the April to June period represented a slight acceleration from the 6.3 percent growth seen in the first quarter, and was driven by increases in consumer spending, exports and local government spending

The govt is likely to cut spending for the current fiscal year by ₹2 trillion as it faces one of the biggest tax shortfalls in recent yearsThe govt has spent about 65% of the total expenditure target of ₹27.86 trillion till Nov but reduced the pace of spending in Oct and Nov

Constrained access to funding affected credit profiles of entities across sectors, especially non-banks and real estateThe value of debt downgraded more than trebled to ₹1.38 lakh crore in the first half of fiscal 2020 from ₹39,000 crore in the year-ago period

With considerable uncertainty surrounding the progress of the annual monsoon and rural distress still a challenge, the big question is where does the finance minister raise the necessary funds in an otherwise difficult year

Govt announced a plan to give handouts to about 120 mn small farmers, budgeted at a cost of Rs. 75,000 crore a yearHere’s a look at the sources of government’s receipts and where it deploys every rupee it earns

Since 2004-05, a majority of ministries have not spent the sum allotted to them, but this govt has improved on this aspect in the two middle years of its tenureIn FY13 and FY14, 77% and 73% ministries, respectively, underutilized their funds by above 5%

The second batch of Supplementary Demand for Grants for 2018-19 involving a gross spending of ₹85,948.86 crore was tabled by finance minister Arun Jaitley in the Lok Sabha today

Not only do governments tend to raise overall spending before elections, they also often spend relatively more on subsidies and transfers

Finance minister Piyush Goyal says there will not be a spending cut to meet the fiscal deficit target as the government has enough alternative resources for planned expenditure

Consumption growth in rural India has outpaced urban consumption by the widest margin in five years, encouraged by good rainfall and increase in government spending on infrastructure