FY23 expenditure budget may rise by Rs.500 billion
The central government is likely to overshoot its Rs.39.4 trillion expenditure budget for 2022-23 by Rs.500 billion because of the increased fertiliser and cooking gas subsidies besides a higher fund requirement under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a government official told Economic Times. The government’s fertiliser bill is expected to rise by Rs.150 billion over Rs.1.1 trillion already provided on account of the hardening of international prices. The subsidy provided for cooking cylinders may require additional funds to the tune of Rs.200 billion, while subsidy provided for MGNREGA is likely to overshoot by about Rs.150 billion above the budgeted Rs.730 billion. Ruling out the possibility of any extra borrowing, the official stated that savings and buoyant tax collections will be able to support the additional spending. However, he cautioned that if the government decides to extend the Pradhan Mantri Garib Kalyan Anna Yojana again by six months, then it could impose an additional burden of Rs.800-900 billion.