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Govt spending on capex gets a push

Total expenditure for 2014-15 is pegged at Rs 17,94,892 cr, 1.79% more than the interim Budget

BS Reporter 

With an eye on faster growth, has raised more than it did revenue expenditure.

"The steps that I will announce in this are only the beginning of a journey towards a sustained growth of 7-8 per cent or above within the next 3-4 years along with macro-economic stabilisation that includes lower levels of inflation, lesser fiscal deficit and a manageable current account deficit," Jaitley explained while presenting his maiden

The government's total expenditure for 2014-15 was pegged at Rs 17,94,892 crore, 1.79 per cent more than the interim of February and almost 13 per cent more than the 2013-14 revised estimates (RE).

Of this, was estimated at Rs 2,26,781 crore, 19 per cent more than the RE of 2013-14 and 6.5 per cent more than the interim estimates.

In contrast, Jaitley estimated total revenue expenditure in 2014-15 at Rs 15, 68, 111 crore, just 1.16 per cent more than the interim and 12 per cent more than the RE of 2013-14.

This clearly shows that expenditure on capital items, which usually lead to long-term asset creation, has been given more importance in the current Budget, which also reflects the priorities of the new government.

This focus is also reflected in Plan expenditure for 2014-15. Plan expenditure on capital account is estimated at Rs 121,497 crore, around 7.47 per cent more than the interim On revenue account, however, the expenditure has been pegged at Rs 453,503 crore, just 2.55 per cent more than the interim

First Published: Fri, July 11 2014. 00:34 IST