Capital expenditure to continue, says Jaitley

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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

  • 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


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