Expenditure Current Affairs - 2019
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India’s fiscal deficit in the first eight months of FY2018-19 rose to Rs 7.17 lakh crore, hitting around 115% of the budgeted target for the current financial year, breaching the target of Rs 6.24 lakh crore set by the government for the financial year 2018-19.
Fiscal Deficit is the difference between total revenue and total expenditure of the government. The borrowings are not included while calculating the total revenue. Fiscal Deficit gives an indication about the total borrowings required.
Revenue of the Government
The Government of India had received Rs.8,96,583 crore (49.32% of corresponding BE 18-19 of Total Receipts) up to November 2018. It comprised of Rs. 7,31,669 crore Tax Revenue (Net to Centre), Rs. 1,38,637 crore of Non-Tax Revenue and Rs. 26,277 crore of Non-Debt Capital Receipts. The Non-Debt Capital Receipts consists of Recovery of Loans (Rs.10,467 crore) and Disinvestment of PSUs (Rs. 15,810 crore).
Expenditure of the Government
The expenditure of the government of India was Rs.16,13,208 crore (66.06% of corresponding BE 18-19), out of which Rs.14,21,778 crore is on Revenue Account and Rs.1,91,430 crore is on Capital Account. Rs.3,48,233 crore accounted for Interest Payments and Rs.2,19,046 crore accounted for major Subsidies under revenue account.
The Public Financial Management System (PFMS) after implemented on full scale will help Union Government to save a significant amount on interest costs.
It will allow the government to monitor and access the more than Rs.1 lakh crore of idle funds lying with it under various heads. Once government access these funds through PFMS, it need does not need to borrow that amount.
Government is planning to roll out this platform from next financial year i.e. April 2017 along with Goods and Services Tax (GST). It will be integrated with IT network of the GST.
What is Public Financial Management System?
- PFMS is an electronic fund tracking mechanism compiles, collates and makes available in real-time, information regarding all government schemes.
- Besides, it will significantly provide government real-time information on resource availability and utilisation across schemes.
- In addition it allow government expenditure to adopt a Just-in- Time (JIT) approach, with payments made only when they are needed.