Don’t miss the latest developments in business and finance.

image

Revenue expenditure of the government

About Revenue expenditure of the government

Facebook IconLinkedIN Icon

What is Revenue expenditure of the government

Those expenditures of the government that do not lead to the creation of fixed assets are called revenue expenditures. The government spends money under various accounting heads, such as paying interest on loans, salaries and pensions, subsidies, spends on different ministries and departments, etc. Grants made to state governments and other parties are also treated as revenue expenditures, even though these might be used for the creation of fixed assets.
 
Budget Estimates (BE) for 2018-19 pegged the Indian government’s revenue expenditure to have grown 10.2 per cent over the Revised Estimates (RE) for 2017-18. That was a big drop from over 15 per cent growth in the preceding year. 
 
The Union government had cut its total expenditure by about Rs 1.45 trillion over its revised estimates for 2018-19. Of this, Rs 13,000 crore was cut on account of capital expenditure and Rs 1.32 trillion under revenue expenditure.
 
The bulk of the expenditure compression was achieved through off-Budget borrowing. The burden of such borrowing fell on many public sector undertakings (PSU), such as Food Corporation of India (FCI), Housing and Urban Development Corporation, National Housing Bank and Rural Elec­trification Corporation.
 
Even though there is no official confirmation of such borrowing, the figures put out by the Controller General of Accounts (CGA) revealed it all. For instance, the CGA’s 2018-19 figures showed how the food subsidy bill came down by a whopping 40 per cent over Rs 1.71 trillion mentioned in the revised estimates. 
 

Latest Updates on Revenue expenditure of the government

The interim Budget 2024-25 on February 1 will likely see the central government boost investment, while still sticking to the fiscal consolidation path

Updated On: 15 Jan 2024 | 4:59 PM IST

Provisional actuals of the Budget for 2020-21 have once again varied sharply from the revised estimates. The variation provides fiscal cushion, but also raises several questions

Updated On: 03 Jun 2021 | 5:15 PM IST

There are several welcome standalone reforms but these do not add up to a coherent strategy to achieve a $5 trillion economy

Updated On: 02 Feb 2021 | 2:22 AM IST

Small savings, which will chip in a record Rs 4.8 trillion, breathe life into stimulus

Updated On: 02 Feb 2021 | 12:59 AM IST

Public spending push is expected to help push growth after pandemic slowdown in investments

Updated On: 01 Feb 2021 | 2:41 PM IST

The larger economy suffers more than the central govt, as New Delhi is allowed to get away with behaving arbitrarily and then hiding the reality behind bogus numbers, writes T N Ninan

Updated On: 25 Jan 2020 | 12:02 AM IST

In Budget 2020 speech, the FM should state how she intends to return to the 7% track, and the hard decisions she will take to adjust to the realities of a slowing economy, writes T N Ninan

Updated On: 28 Dec 2019 | 12:07 AM IST

With economic growth at its lowest in over six years, and a long-lasting slowdown affecting demand and consumption, the FM and her men are looking to announce measures to boost growth and activity

Updated On: 10 Jan 2020 | 2:45 PM IST

Pensions and salaries took away more than a fourth of government's revenue spend in 2017-18 and 2018-19

Updated On: 02 Jul 2019 | 11:59 AM IST

Finance Minister Arun Jaitley has said the fiscal deficit target of 3.3 per cent of gross domestic product (GDP) will be met without any cut in capital expenditure

Updated On: 02 Jul 2019 | 12:00 PM IST

The findings by PRS Legislative Research shows the overall expenditure of all states has soared from Rs 12.47 trillion in 2011-12 to Rs 33.18 trillion in 2018-19

Updated On: 02 Jul 2019 | 11:59 AM IST

Limited fiscal room has led to the state cutting back on capital outlay and social sector spending

Updated On: 02 Jul 2019 | 12:00 PM IST

It would help if the government could instead boost capital expenditure

Updated On: 02 Jul 2019 | 12:05 PM IST