The Union Minister of Finance and Corporate Affairs while presenting the General Budget 2017-18 in Parliament said that the total expenditure in Budget for 2017-18 has been placed at Rs. 21.47 lakh crores.
With the abolition of Plan-Non Plan classification of expenditure, the focus is now on Revenue and Capital expenditure. Taking note of the fiscal deficit roadmap for the next three years and considering the need for higher public expenditure in the context of sluggish private sector investment and slow global growth, the Finance Minster, Jaitley has pegged the fiscal deficit for 2017-18 at 3.2% of GDP and further committed to achieve 3% in the following year i.e. 2018-19.
The Union Finance and Corporate Affairs Minister, Arun Jaitley further said that he has stepped-up the allocation for Capital expenditure by 25.4% over the previous year with the aim of fiscal consolidation, without compromising the requirements of public investment. Presenting his Fourth Budget for 2017-18 in Parliament today, the Finance Minister Arun Jaitley said that the total resources being transferred to the States and the Union Territories with Legislatures is Rs. 4.11 lakh crore in 2017-18, as against Rs. 3.60 lakh crore in BE 2016-17.
SJaitely added that a provision of Rs. 3,000 crore has been made under the Department of Economic Affairs to implement various Budget announcements and other New Schemes in 2017-18. For Defence expenditure excluding pensions, he provided a sum of Rs 2,74,114 crores including Rs. 86,488 crores for Defence capital. The Finance Minister increased allocation for Scientific Ministries to Rs. 37,435 crore in 2017-18.
Jaitley also stated that he has taken due care to limit the net market borrowing of Government to Rs. 3.48 lakh crores after buyback, much lower than Rs. 4.25 lakh crores of the previous year. More importantly, the Revenue Deficit of 2.3% in BE 2016-17 stands reduced to 2.1% in the Revised Estimates. The Revenue Deficit for next year is pegged at 1.9% , against 2% mandated by the FRBM Act.