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With tax revenue shortfall, govt cuts spending for Q4 FY20

Jan 02, 2020 18:21 IST

With decelerating revenue from taxes, the Finance Ministry has decided to cap further spending in the last quarter of the current fiscal year. The year-on-year growth in the Centre's total budgetary expenditure had gone up from (-)11% in June to 34% in September, but then slowed to 5.5% in November. The Centre’s decision to cap spending at 25% of the budget estimate for the full financial year, could result in an annual spending compression of Rs 2.2 lakh crore, versus the Rs 27.86 lakh crore budgeted. Any additional expenditure can be incurred only after parliament approval.

Economy