Arun Jaitley said that there will not be cuts in capital expenditure as it would impact growth. The government has spent 44% already till August 31. It is firm on the 3.3% fiscal deficit target for the current fiscal.
Capital Expenditure
The total expenditure estimated by the government during the 2018 Budget was ₹24.42 lakh cr, a₹ 2.24 lakh cr increase from 2017-18 expenditure. The 3.3% fiscal deficit stands at ₹6,24,276 cr that is to be financed through borrowings.
Reasons for expenditure increase
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Provisions made to State and Union Territory governments for revenue loss due to GST
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High interest payments due to market loans
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Higher provision made for food subsidy
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Higher defence Pensions, civil Pensions and pensions payable to erstwhile employees of DoT in BSNL
- Capital expenditure on defences
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Higher outlays provided to Pradhan Mantri Swasthya Suraksha Yojana (Health and Family Welfare)
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Higher investment in Indian Railways, Higher Education Financing Agency, Atomic Energy, Industries and Construction of roads