The government has partially rolled back stimulus by raising excise duty, but it continues to support the system with a 15 per cent hike at Rs 3,73,000 crore in planned expenditure outlay for 2010-11.
The government is likely to spend Rs 3,15,000 crore under plan outlays this fiscal, around 3 per cent less than provided in the Budget estimates.
As such, the government was able to restrain fiscal deficit at 6.7 per cent this fiscal, marginally lower than 6.8 per cent forecast earlier.
This was achieved despite tax collections taking a hit to the tune of Rs 8,000 crore, compared to Rs 6,41,000 crore in the Budget estimates.
Pressed to provide stimulus to the slowing down economy, the Government had raised plan expenditure by over 18 per cent this fiscal, against last year's level of Rs 2,75,000 crore.
Alongwith non-plan expenditure, which is likely to be over Rs 7,00,000 crore this fiscal, the total expenditure crossed Rs 10,00,000 crore for the first time ever to Rs 10,21,000 crore during 2009-10.
Total expenditure will still be higher at Rs 11,08,000 crore next fiscal.