Revenue expenditure is expected to exceed budgeted value in FY24 : CareEdge

Revenue expenditure: The government is expected to meet its capital expenditure target of Rs 10 trillion , however, some slippages in the revenue expenditure front is expected as mentioned by CareEdge in its pre-budget memorandum.  According to CareEdge, the government is expected to miss out on its revenue expenditure target to the tune of about Rs 734 billion.  

The report also highlighted that on December 6, 2023, the central government approved the first supplementary demand for grants, amounting to Rs. 1.29 trillion. Taking into consideration the savings from another scheme worth Rs 709 billion, the net additional outlay would be Rs 584 billion. 

The additional funds were directed towards food subsidies, fuel subsidies, fertilizer subsidies, and MNREGA. 

Given that the actual expenditure on the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) has already surpassed the budgeted allocation, and with persistent high subsidy spending, particularly on fertilizers, the credit rating agency anticipates an additional requirement of funds for expenditure.