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.
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
Provisions made to State and Union Territory governments for revenue loss due to GST
High interest payments due to market loans
Higher provision made for food subsidy
Higher defence Pensions, civil Pensions and pensions payable to erstwhile employees of DoT in BSNL
- Capital expenditure on defences
Higher outlays provided to Pradhan Mantri Swasthya Suraksha Yojana (Health and Family Welfare)
Higher investment in Indian Railways, Higher Education Financing Agency, Atomic Energy, Industries and Construction of roads