Centre chose expenditure switch to contain widening fiscal deficit

Robust revenue collection and higher nominal GDP, however, led to an improved fiscal deficit at 6.7 per cent in FY22 against the 6.9 per cent estimated

Higher expenditure by some ministries in FY22 was balanced by lower spend on the part of others, including social sector departments, to keep the fiscal deficit in check, the latest Controller General of Accounts (CGA) data has showed.

In FY23, when the government has decided to prune revenue expenditure, experts say it may follow a similar balancing approach.

According to the CGA data for FY22, while the government overshot its revenue expenditure at 101 per cent of its Revised Estimates (RE), it fell short on its capital expenditure at 98.5 per cent of the RE. Expenditure by the Ministry of Mines (286