New Delhi: The Ministry of Finance on Wednesday imposed expenditure checks in several departments, ranging from education and home to telecommunications and power, as part of cash management training due to the “developing” Covid-19 situation and cash management requirements.
While these departments can spend 20% of their annual allocation during July-September, 19 departments, such as health, pharmacy, fertilizers, rural development, agriculture and farmers’ welfare, road transportation and trains will not face restrictions.
This step occurs when the latest numbers released by the General Account Controller estimate the center fiscal deficit at Rs 1.23 lakh crore or 8.2% of the full year target for 2021-22 at the end of May because tax income and non-tax gather with taxes and taxes Expenditures remain controlled.
During April-May, revenue revenues were estimated at 19.6% of the target, compared to 2.2% a year ago when the country was in tight locking grip.
While the center said that wanting to encourage expenses, the focus is on capital expenditure which creates assets and priority sectors.
Like health and pharmacy.
Steps Wednesday show that the government expects higher expenses than budgeted, although stimulus measures are expected to only increase expenditure around Rs 1.5 lakh crore for budget estimates.
But this indicates that by checking non-essential expenditure, the government will try to control a fiscal deficit of 6.8% of GDP.
Last year, when the revenue flow slowed, the government had used similar steps, dividing ministries and departments into three heads.
Economists say the government has so far maintained a strict strap on its finances in the first two months of fiscal year but the deficit can be influenced because the steps launched to provide assistance to several sectors due to the second Covid-19 wave.
“Overall, the budget has been well managed.
Concerns will advance will be a higher expenditure on free food and fertilizer subsidies and other expenses under the FM Relief Program, ” said Madian Sabnacis, chief economist at the treatment ranking.