Financial expenditures between 2014 - 2024
Total expenditure
The total expenditure of the Union government in 2014-15 was as large as 13.34 per cent of gross domestic product or GDP.
Reduction in total expenditure
Over the next four years, this was brought down to 12.25 per cent of GDP by 2018-19.
Reduction in Revenue expenditure
Notably, this reduction was achieved through a welcome squeeze on revenue expenditure, while capital expenditure remained broadly unchanged during these five years at between 1.5 per cent and 1.8 per cent of GDP.
Rise in revenue and capital expenditure
The pre-Covid year of 2019-20 and the Covid year of 2020-21, 13.4 per cent and 17.7 per cent of GDP, respectively, fuelled largely by a rise in revenue expenditure and a small increase in capital expenditure.
Reduction in total expenditure
in the following three years to steadily reduce its total expenditure to 15 per cent of GDP by 2023-24.
Rise in capex
The government’s capital expenditure rose sharply from 2.1 per cent of GDP in 2020-21 to 3.2 per cent of GDP in 2023-24.
Decline in revenue expenditure
revenue expenditure declined from 15.5 per cent to 11.8 per cent in the same period.
Reduction and Increase
interim Budget for 2024-25 had proposed a capex increase to 3.4 per cent of GDP, with revenue expenditure sliding to 11.1 per cent of GDP.
Demands for welfare schemes
demands on the finance minister to increase the allocations for PM Kisan and Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
Surplus from RBI
extra surplus transfer from the Reserve Bank of India (RBI), amounting to almost 0.4 per cent of GDP.
Fiscal deficit
the government’s fiscal deficit for 2023-24 is already down to 5.6 per cent of GDP.
Net tax revenues rising
Net tax revenues for the Centre have been rising slowly after the Covid impact — from 7.2 per cent of GDP in 2020-21 to 7.88 per cent in 2023-24.
