Covid-19: Revenue falling but Centre won’t go for ‘blunt cuts in expenditure’

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Published: May 19, 2020 2:50:50 AM

Despite Centre's revenues substantially falling in April, “there is no intention of any blunt cuts in expenditure,” expenditure secretary TV Somanathan said on Monday. “We will look for savings wherever possible,” Somanathan told CNBC TV18.

With revenues hit hard and expenditure commitments to meet, the Centre has increased its FY21 borrowing limit by Rs 4.2 lakh crore.With revenues hit hard and expenditure commitments to meet, the Centre has increased its FY21 borrowing limit by Rs 4.2 lakh crore.

Despite Centre’s revenues substantially falling in April, “there is no intention of any blunt cuts in expenditure,” expenditure secretary TV Somanathan said on Monday. “We will look for savings wherever possible,” Somanathan told CNBC TV18.

With revenues hit hard and expenditure commitments to meet, the Centre has increased its FY21 borrowing limit by Rs 4.2 lakh crore.

Spending curbs imposed by the Centre on all government departments will likely reduce the budgetary expenditure in April-June by Rs 1.4 lakh crore or 4.6% of the annual budget for FY21.

The Centre will prioritise expenditure this fiscal. While keeping funding unaffected for flagship central schemes, it may trim expenditure on smaller schemes, Somanathan had told FE earlier.

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