FY27 funds won't be enough to meet targets under key programmes: Mospi

Mospi flags FY27 fund shortfall despite years of underspending and large surrenders, as a parliamentary panel highlights gaps in utilisation and fiscal planning

The Ministry of Statistics and Programme Implementation (Mospi) has told the Standing Committee on Finance that its Financial Year 2026–27 (FY27) budgetary allocation of Rs 4,522.25 crore will not be enough to meet physical targets under key programmes, given that it had sought a much higher outlay and internally projected Rs 1,609.74 crore for the Capacity Development Scheme alone.

 

Yet, over the past few years, the ministry has repeatedly received less at the Budget Estimates stage than it asked for, and has then struggled to spend even that. In 2023–24, against a BE of Rs 5,443.40 crore and RE of Rs 3,961.01 crore, actual expenditure was just Rs 2,469.49 crore, while surrenders touched nearly Rs 2,974 crore. Similar gaps had marked other years; FY23 saw Rs 1,681 crore surrendered, and FY25 Rs 1,433 crore.

 

 

The 35th Report of the Standing Committee on Finance, tabled on Tuesday, lays bare this paradox as the statistics machinery pushes ambitious reforms amid tight funds. The ministry pointed to Covid-19 delays, fund-flow transitions and slow state spending for shortfalls, but admitted schemes like Support for Statistical Strengthening (SSS) suffer from an “input-based financing model”, disbursing funds without clear output links.

 

Committee data further shows the trend: Mospi sought Rs 6,753 crore for FY26 but got Rs 5,471 crore, and the actuals as of December 31, 2025, stood at Rs 5,116 crore against RE of Rs 5,551 crore.

 

The panel recommended the ministry proceed with its planned initiatives as per the projected trajectory and ensure optimal utilisation of the currently allocated funds. “If further financial requirements emerge to meet the physical targets, the Ministry may seek additional fund through Supplementary Demands for Grants,” it added.

 

In a separate report by the Standing Committee, a persistent spending rush was highlighted by the Ministry of Planning's (NITI Aayog) Quarterly Expenditure Plan (QEP), violating Department of Economic Affairs guidelines limiting Q4 expenditure to no more than 33 per cent of the Budget Estimate (BE). In FY2025–26, Q4 projected utilisation hit Rs 139.17 crore against a QEP of Rs 145.03 crore (95.96 per cent), after sluggish early quarters: Q1 at 40.76 per cent (Rs 148.37 crore actual vs Rs 364.03 crore QEP), Q2 at 64.48 per cent (Rs 158.63 crore), and Q3 at 48.53 per cent.

 

“The Committee also notes that this spending pattern is suggestive of administrative bottlenecks hindering a steady fiscal flow,” the committee noted. It recommends internal reviews, synchronising sanctions with QEP, and ensuring the first two quarters achieve at least 50 per cent of targets to promote steady fiscal discipline.

 

The Committee further noted that there is stark divergence between ambitious physical targets and actual ground-level delivery under the Atal Innovation Mission (AIM), primarily driven by a three-year fiscal slump. “Since FY2023–24, actual expenditure has plummeted from 62 per cent to a low of 17 per cent in 2024–25, before slight recovery in 2025–26,” it highlighted.