The total expenditure has increased by Rs 3,26,965 crore ( ~13.30 per cent) from Rs 24,57,235 crore in 2018-19 RE to Rs 27,84,200 crore in 2019-20 BE.
The interim Budget 2019-20 has estimated the fiscal deficit at 3.4 per cent of GDP for the year 2019-20.
“The estimate of incomes and expenditure which I am presenting today, pegs the fiscal deficit of year 2019-20 at 3.4% of GDP,” said Minister of Finance Piyush Goyal while presenting the Budget 2019-20 in Parliament today.
“We would have maintained fiscal deficit at 3.3 per cent for year 2018-19 and taken further steps to consolidate fiscal deficit in year 2019-20. However, considering the need for income support to farmers, we have provided Rs 20,000 crore in 2018-19 RE and Rs 75,000 crore in 2019-20 BE. If we exclude this, the fiscal deficit would have been less than 3.3 per cent for 2018-19 and less than 3.1 per cent for year 2019-20.”
The revenue deficit in 2018-19 was budgeted at Rs 4,16,034 crore, 2.2 per cent of GDP, as per a macro-economic data. On the other hand, the current account deficit (CAD) widened to 2.7 per cent of GDP in first half of 2018-19 from 1.9 per cent of GDP in 2017-18, mainly on account of higher trade deficit arising from higher petroleum, oil and lubricants imports. Despite the marginal increase, the fiscal deficit to GDP ratio is well on track to achieve its target level of 3 per cent of GDP.
As per minister, the total expenditure shows a high increase considering low inflation. It has increased by Rs 3,26,965 crore or approximately 13.30 per cent, from Rs 24,57,235 crore in 2018-19 RE to Rs 27,84,200 crore in 2019-20 BE.
Further, 2018-19 RE figures have shown an increase over BE 2018-19 figures by Rs 15,022 crore.
The capital expenditure for 2019-20 BE is estimated to be Rs 3,36,292 crore. The increase in total expenditure is on account of increased support to agricultural sector, interest payments and internal security, as per the ‘Budget at a Glance’ document.