GDP size can increase by 22 lakh crores, fiscal deficit will also increase by 3.3 lakh crores
The central government has sought permission for additional expenditure of Rs 4.36 lakh crore.
Due to increase in revenue collection and expenditure, the size of GDP can increase by Rs 22 lakh crore to 275-280 lakh crore in the current financial year. Earlier the government's estimate was Rs 258 lakh crore. Bank of Baroda said in the report that earlier the total expenditure was estimated at Rs 39.45 lakh crore, which may increase to Rs 42.7 lakh crore. Fiscal deficit will increase from Rs 16.6 lakh crore to Rs 19.9 lakh crore, which will be between 7-7.1 per cent of the budget.
The central government has sought permission for additional expenditure of Rs 4.36 lakh crore. Out of this Rs 1.11 lakh crore will be met by getting more revenue. This will increase the total net expenditure by Rs 3.26 lakh crore. 40 thousand crores can be obtained from disinvestment. The target in the budget was 65 thousand crores. Out of 1.11 lakh crore which will be received in excess of the revenue, Rs 45,000 crore will be spent by Ministry of Rural Development, Rs 14 thousand crore by Defense Ministry, Rs 13 thousand crore by Telecom Ministry, Rs 10 thousand crore by Revenue Department and Rs 19 thousand crore by Road and Transport Ministry.
Ministry of Railways will spend 12,000 crores, and 45,000 crores will be spent on schemes like National Employees Guarantee Fund (NEGF), MNREGA, PM Awas. 12,000 crore will be spent on the Ministry of Railways, Rs 18,000 crore on the Ministry of Road Transport and Highways and Rs 10,000 crore on Jammu and Kashmir and Puducherry.