Serious Expenditure Reforms India Needs
SERIOUS EXPENDITURE REFORMS INDIA NEEDS INTRODUCTION The Government will be spending over Rs. 31 lakh crore in the financial year 2019-20 (including about Rs. 3.5 lakh crore of off-budget/ below the line expenditure), roughly 15% of India’s GDP. My note Expenditure Budget: How much and on what the Central Government spends Rs. 31 lakh crore describes myriad programme of development (centre sector schemes and centrally sponsored schemes), large subsidy programme (food, fertiliser, LPG, loans etc.), mandatory transfers to States, establishment, interest, investments and many others on which the Government spends this big pool of resources. It also describes what programme the Central Government has some control or discretion on and where it has only to spend with hardly any control or discretion. Whatever be the nature of central government expenditure programme, it affects the economy, redistribution of incomes to poor people, infrastructure building, financial markets