States spend lower than their budgeted estimates: PRS Legislative Research

The underspending was most for Telangana (27 per cent) and Assam (25 per cent)

States tend to spend less than what they project in their Budget Estimates (BE), research by Delhi-based non-profit organisation PRS Legislative Research shows. States missed their spending targets consistently by 7 per cent from 2011-12 and 2015-16, the report went.

Telangana, at 27 per cent, and Assam, at 25 per cent, had underspent the most. Generally, 80 per cent of states’ budgeted funds come under revenue expenditure. The remaining 20 per cent is capital expenditure (capex). From 2011 to 2015, states witnessed an underspending of 6 per cent in their revenue expenditure and 16 per cent in their capex, the