The government plans to substantially increase expenditure by Rs 2,75,282 crore in FY25 over expenditure during this fiscal
According to the major variations in the Budget Estimates for FY25 over the Revised Estimates for 2023-24, the government has substantially hiked capital outlay on Defence and General Economic Services.
Interest payment and servicing of debt
The Budget earmarks Rs 11,90,440 crore for Interest Payment and Servicing of Debt, reflecting a substantial increase of Rs 1,35,013 crore compared to the previous fiscal year. This surge underscores the government’s commitment to managing debt and stabilising the fiscal landscape.
Capital outlay on other General Economic Services
A remarkable spike in this category is evident, with the Budget Estimate at Rs 71,148 crore, a staggering increase of Rs 70,652 crore from the Revised Estimate of Rs 496 crore in 2023-24.
Grants to State/Union Territory governments
Allocations for Grants to State/Union Territory Governments have seen a notable increase, rising to Rs 6,19,298 crore, up by Rs 28,767 crore from the previous year. This suggests a concerted effort towards collaborative development with states and Union Territories, emphasizing decentralized governance.
Capital outlay on defence services
National security takes center stage in the budget, with Rs 1,72,000 crore allocated for Capital Outlay on Defence Services. This marks a significant uptick of Rs 14,772 crore, reflecting the government’s commitment to modernising defense capabilities and ensuring the country’s security.
Capital outlay on Railways
Infrastructure development gains momentum as the budget allocates Rs 2,52,000 crore for Capital Outlay on Railways, witnessing an increase of Rs 12,000 crore from the previous year, underscoring the government’s focus on enhancing connectivity and bolstering the country’s transportation network.
While these variations indicate a strategic realignment of expenditure priorities, some sectors witness reductions. Notably, Crop Husbandry faces a decrease of Rs 19,640 crore, and Roads and Bridges experience a decline of Rs 4,297 crore.
Overall, the Budget Estimates for 2024-25 signal a nuanced approach to fiscal management, aiming to balance economic growth, national security, and collaborative development with states and Union Territories.
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