The government has decided to cut its expenditure for the last quarter of the current fiscal due to the weak tax collections, reported The Hindu BusinessLine.
According to the report, which cites an office memorandum by the Budget Division of the Economic Affairs Department under the Finance Ministry, the government has decided to cap the expenditure at 25 percent of the Budget Estimate, down from 33 percent, during the last quarter of FY20.
Further, March expenditure has been cut to 10 percent against the current 15 percent, said the report. The revised limit for January and February will be 15 percent against the Budget Estimate of 18 percent, it added.
The memorandum also lists guidelines for incurring expenditure for the remaining period of current fiscal including obtaining the approval of Parliament for any additional expenditure, the report mentioned.