By the financial year 2019-20, the capital expenditure of Indian government will increase by 25 per cent to Rs 3.9 lakh crore. The expenditure of defence alone will be rising by 22 per cent. This is the estimation of the Mid-Year Review scheduled in Parliament today.
The government has budgeted the capital expenditure for Rs 3,09,801 crore in the present fiscal year. This is expected to rise up to Rs 3,41,000 crore in the next year and to Rs 3,90,000 crore in 2019-20.
The capital expenditure of Defence will rise by 30 per cent from Rs 91,580 crore in the current fiscal to Rs 1,01,137 crore in the next one. In 2019-20 the defence expenditure will go up to Rs 1,11,706 crore.
Total spending including the revenue expenditure of country is expected to go up from Rs 21.46 lakh crore in 2017-18 to Rs 23.4 lakh crore in the next financial year. In the upcoming year 2019-20 the total spending will be of Rs 25.95 lakh crore.
The government has projected the expenditure on fertiliser subsidy to be flat at Rs 70,000 crore in the span of time from present fiscal to 2019-20. The food subsidy bill will go high to Rs 1.75 lakh crore in next year. While food subsidy bill will be of Rs 2 lakh crore in the 2019-20 fiscal year. At present, the Food subsidy bill is at Rs 1.45 lakh crore.
It was also declared that the petroleum subsidy would go down to Rs 18,000 crore in 2018- 19, which was earlier of Rs 25,000 crore. In year 2019-20 the petroleum subsidy will be about Rs 10,000 crore in 2019-20.
Subsidy outgo on petrol is restricted to LPG and kerosene but the Petrol and diesel prices have been decontrolled.
As per the review, the prime aim of the government is to eradicate the subsidy on LPG cylinders by end March 2018. The government is putting all efforts continuously to accomplish this target of rationalising the subsidies. The Government has also decided to raise the cost of LPG cylinders by Rs 4 per month.
Now the government is focused on decreasing the kerosene subsidies.