Not accounting them in the Union finance account have grave fiscal implications and impacts future policy decisions. The federal auditor has said that such bills do not reflect the authenticity of government's claims on revenue expenditure and fiscal deficit.Postponing payment of current liabilities is burdening the future. The subsidies bill in 2016-17 was the lowest in the last five years.It has reduced from Rs 2.57 lakh crore in 2012-13 to Rs 2.33 lakh crore in 2016-17. "Had these claims of three quarters been paid during the financial year, the total expenditure on subsidies would have been...2.21% of GDP in 2016-17, as against 1.53%," the CAG said. Majority of the subsidy expenditure is on food which accounted for 47% of the total expenditure and 29% on fertilisers.
Source: Times of India January 02, 2018 21:08 UTC