Govt expenditure likely to over-shoot by 21%: CMIE

For 2008-09, total expenditure is budgeted at Rs 7,50,884 crore, an increase of 5.2 per cent over the actual planned expenditure in 2007-08.        

The total Government expenditure, including expenditure on debt relief package and outgo on account of the Sixth Pay Commission's recommendations for 2008-09 stands at Rs 7,81,448 crore, the CMIE report said.        

"Additional subsidies for fertilisers and petroleum products add up to Rs 1,30,000 crore. This amount and the impact of the Sixth Pay Commission and debt relief package may push up the total expenditure to Rs 9,11,448 crore during 2008-09," the report said.        

Interest payment, which is the largest expenditure head of the Central Government, accounted for 25 per cent of total expenditure during April and May, CMIE said.        

At Rs 27,229 crore, it was up by 3.8 per cent over the payments made in the corresponding months of 2007, the report said.