Budget 2021

Higher outgo to States leads to a cut in Plan expenditure

Our Bureau New Delhi | Updated on January 24, 2018

This is a result of the Finance Panel’s recommendations



Greater outgo of revenue to States has led to government cutting its Plan expenditure for 2015-16.

The Budget estimates for 2015-16 peg Plan expenditure at ₹4,65,277.04 crore, nearly 20 per cent or ₹1,09,722.96 lower than last year’s Budget estimates.

Lower than RE

In fact, the Plan expenditure, as per the Budget estimates, is ₹2,656 crore lower than even the revised estimates for 2014-15.

This is despite the target for tax receipt being kept at ₹14,49,490.56 crore, an increase of 6.2 per cent or around ₹84,966 crore over last years Budget estimates.

This fall can be attributed to the fact that this year the Government has accepted the 14{+t}{+h} Finance Commission’s recommendations and given States a greater share of the revenues.

Shortfall in tax receipts and missing the disinvestment target had resulted in a fall in Plan expenditure by the Government in 2014-15.

As per the revised estimates for 2014-15, Plan expenditure fell nearly 18.6 per cent to ₹4,67,933 crore against the Budget estimates of ₹5,75,000 crore for the year. The fall was of ₹1,07,067 lakh crore.

Tax mop-up dips

A major reason for the fall can be attributed to the decline in tax receipts for the year.

There was shortfall of ₹1,13,133 crore in tax receipts as per the revised estimates, compared with the Budget estimates for 2014-15.

The revised estimates for 2014-15 peg tax receipts at ₹12,51,391 crore, against Budget estimates of ₹13,64,524 crore.

Coupled with this, the Government also failed to meet its disinvestment target.

It could only mop up ₹26,353 crore, against its target of ₹43,425 crore, resulting in a shortfall of nearly ₹17,072 crore.

Published on March 01, 2015

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like