Centre may save ₹45k cr on lower capex by states, subsidy payout
capital expenditure and subsidy pay-out.
The savings could mainly come from the subsidy bill on account of softening fertiliser prices, under-utilisation of funds by states, including for their capital spending and interest from states on money parked in single nodal agency accounts, a senior official told ET. The government, in the budget presented last month, had revised its 2023-24 expenditure estimate to ₹44.90 lakh crore from the previously budgeted ₹45.03 lakh crore.
Any unspent amount from the revised estimate, backed by improved tax collections, could help the Centre further trim its fiscal deficit from the budgeted 5.8% of gross domestic product unless there is some last-minute adjustment necessitating an additional outgo, the official said.
The Centre had revised its fiscal deficit target for fiscal 2024 to 5.8% of GDP in the current fiscal year from the 5.9% gap forecast in the budget for the year. Its total expenditure is estimated at ₹47.66 lakh crore.
«Despite the hike in LPG and food subsidy, the total subsidy bill is likely to be lower by ₹8,000 crore from the revised estimate,» the official added.
The FY24 allocation for fertiliser subsidy was revised to ₹1.89 lakh crore from the budgeted ₹1.75 lakh crore. However, moderating global fertiliser prices, reduced import volume and efficient subsidy utilisation could result in the lower subsidy outgo. The Centre also expects about ₹15,000 crore saving against the revised Rs 1.05 lakh crore capex loan target for states this fiscal year.
While the
