Govt expenditure in 2010-11 would be Rs 11,08,749 crore.
With the government’s focus shifting to fiscal consolidation and tightening expenditure, it expects to spend 66 per cent of total expenditure on non-plan activities during 2010-11 compared to 70 per cent in 2009-10. The main reason for this is that the burden on account of Sixth Pay Commission report is off its back now.
“We do not have the burden of 60 per cent arrears of the Sixth Pay Commission next year. The level of debt relief is also less this year, though interest payment is more this year. The subsidy level is more or less same next year,” said expenditure secretary Sushma Nath at a post-Budget press conference.
The total government expenditure during 2010-11 would be Rs 11,08,749 crore, of which non-plan would be Rs 735,657 crore. Despite the austerity drive, the non-plan expenditure during the current year rose 15 per cent to Rs 706,371.23 crore. This was mainly on account of Rs 19,749 crore increase in subsidy payout, of which petroleum subsidy alone accounted for Rs 12,000 crore.
The total central Plan outlay is Rs 524,484 crore during 2010-11 as against Rs 425,590 crore in the revised estimate for 2009-10.
Finance minister Pranab Mukherjee said, “The government plans to spend Rs 373,091.99 crore next year. “While there is a 15 per cent increase in Plan expenditure, the increase in non-Plan expenditure is only 6 per cent over the budget estimate of previous year. With this level of Plan expenditure, I am confident that the total Plan expenditure would be very close to 100 per cent of the expenditure envisaged in the 11th Five Year Plan.”