The Centre may have to trim the annual budgetary expenditure for the current financial year by Rs 50,000 crore, reported Financial Express.
According to the report, the cut, which is valued at 2 percent of the estimated level, is part of the centre’s effort to keep the fiscal numbers from going awry. The report added that the cut in expenditure would primarily affect defence and some social-sector spending as the government wants to keep the public spending robust.
“The ministries or departments which are laggards in spending in the first half of this year may see budget cuts,” an official was quoted as saying in the report.
The development is significant as the move is a divergence from the policy followed by the ruling NDA government till now, the report said. While the previous UPA government had resorted to heavy expenditure reductions to keep the fiscal numbers healthy, the report said that the NDA government hasn’t messed up with its original budget estimates much till now.
The development, however, comes after seeing shortfall in disinvestment, telecom and GST receipts, added the report.