Budget 2016: The Centre’s expenditure is progressing according to the Budget plan for the current financial year, finance secretary Ratan P Watal said, indicating that there won’t be huge slippage in spending to meet the fiscal deficit target of 3.9% of GDP, reports fe Bureau in New Delhi.
In April-December of FY16, the Centre has already spent nearly 75% of the budgeted total expenditure of R17.8 lakh crore, thereby evenly spreading out the spending of the year.
Just days ahead of the Budget for 2016-17, in an interview to the YouTube channel of the finance ministry, Watal said the government has so far released R4,11,682 crore, or 78.56% of the Budget estimate of R5.24 lakh crore, under devolution of taxes to states for the current fiscal year. It would provide three more installments by March, based on the tax collections till then.
The budgeted 55% increase in tax devolution to states in FY16 as compared to the allocation of R3.38 lakh crore in FY15, was due to implementation of recommendations of the 14th Finance Commission that increased states share in central taxes to 42% from 32%.
As part of Central share towards State Plans and Centrally Sponsored Schemes (CSS), the government has already provided R1,72,594 crore, or 84.5% of the FY16 budget estimate of R2,04,110 crore.
Watal reiterated that the government was fully committed to the principle of cooperative federalism. In the Budget estimates of 2015-16, the total transfers to states is estimated to be at R8.36 lakh crore as against R6.77 lakh crore during 2014-15 and R6.36 lakh crore during 2013-14. The composition of statutory transfers has increased to over 73% of the total transfers. In the true spirit of cooperative federalism, the discretionary transfers from the Central government has gone down from 38% in 2013-14 to 24% in 2015-16. There is thus greater predictability and certainty now in the quantum of funds flowing to the states apart from the overall increase in untied funds, Watal said.
In terms of the Finance Commission-recommended revenue deficit grants to states, R44,893 crore (91.66% of the allocation) has been released so far to eleven states.
