Infra spend in focus for FY24 | The Financial Express

Infra spend in focus for FY24

Even as the government has kept a lid on revenue spending, it doesn’t plan to hold back such expenditure for key departments in the second half of this fiscal.

Infra spend in focus for FY24
Besides, KOEL was not a party to the DFS which is a private agreement entered into between the Kirloskar family members in their individual capacities, Sebi had told Kirloskar Brothers. (File)

The finance ministry on Monday kick-started the budget exercise for FY24 by holding consultations with six ministries to firm up revised budget estimates (RE) for FY23 and budget estimate (BE) for FY24 as the government is keen to rationalise revenue spending while stepping up capex.

The ministries whose FY23RE and FY24BE expenditure was discussed are environment, forests and climate change; labour and employment; skill development and entrepreneurship; information and broadcasting; statistics and programme implementation; and youth affairs and sports.

Of these ministries, the ministry of skill development has spent only 6% of its FY23BE in the first five months of FY23 compared to 18% of the relevant target a year ago, whereas the ministry of statistics used 23% compared with 57% a year ago.

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On Tuesday, the finance ministry would review the FY23 spending and discuss FY24BE of the ministry of social justice and empowerment; ministry of minority affairs; Election Commission and Union Public Service Commission. The consultations with all ministries would be done in phases under the supervision of finance secretary TV Somanathan till November 10.

Even as the government has kept a lid on revenue spending, it doesn’t plan to hold back such expenditure for key departments in the second half of this fiscal.

Capex remains the focus of the government due to its high multiplier effect, but even revenue expenditure in the infrastructure departments that facilitate asset creation and help spur economic growth won’t be curbed. The government will step up focus on the prudent use of funds by departments to ensure that an anticipated growth slowdown in the second half of this fiscal is not hampered further by undue fiscal stinginess.

Sources said some infrastructure ministries/departments that have not spent much so far this fiscal are being nudged to improve their expenditure level.

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The Centre’s revenue expenditure contracted in each of the three months through August showed the latest official data. After decent spending in the first two months, revenue expenditure shrank 0.3% in June from a year before, 12.4% in July and 4% in August. In the first five months of this fiscal, revenue spending dropped 3%, despite decent spending in April and May. In contrast, capex jumped almost 47% in the first five months, partly aided by a conducive base, although such spending in August rose just 0.5%.

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First published on: 11-10-2022 at 03:30 IST