The Budget tightrope walk - News Summed Up

The Budget tightrope walk


The total expenditure of Union Budget 2018-19 is Rs 24.42 lakh crore. Thus, the fiscal deficit is Rs 6.25 lakh crore (24.42-18.17), which is 3.34 per cent of GDP (Rs 187 lakh crore). That leaves only Rs 5.36 [24.42-19.06] lakh crore of development expenditure, which is wiped out by fiscal deficit (Rs 6.25 lakh crore). The situation is worrisome since the government needs to spend much more than a bare Rs.5.36 lakh crore, which is only 2.86 per cent of GDP. The FM has announced (paras 45 & 114 of budget speech) a total expenditure of Rs 16.38 lakh crore from “extra” budgetary resources.


Source: dna February 14, 2018 02:44 UTC


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