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LATEST NEWS UPDATES | Despite Stimulus, Data Shows The Government May Be Spending Less, Not More -Mariyam Alavi

Despite Stimulus, Data Shows The Government May Be Spending Less, Not More -Mariyam Alavi

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published Published on Nov 23, 2020   modified Modified on Nov 26, 2020

-NDTV

According to the data available with the Controller General of Accounts, however, the central government's total spending fell from 14.9 lakh crore in April-September 2019 to 14.8 lakh crore in April-September 2020, a drop of almost 1 per cent.

In a year when the government has announced multiple stimulus packages to revive India's covid-hit economy, the central government has spent less than the previous year, NDTV has found. The total expenditure for the April- September period in the current financial year (2020) was almost 1 per cent lower than the total expenditure of the central government for the same period the previous financial year.

This despite the government claiming to have announced stimulus packages worth 30 lakh crores.

In a press conference on November 12, announcing the latest stimulus package, the Minister of Finance, Nirmala Sitharaman had said that total spending was "going up," when asked whether the government will be spending more than what they budgeted because of the multiple measures to help boost the economy.

According to the data available with the Controller General of Accounts, however, the central government's total spending fell from 14.9 lakh crore in April-September 2019 to 14.8 lakh crore in April-September 2020, a drop of almost 1 per cent.

The main reason seems to be a drop in capital expenditure, essentially what the government spends on infrastructure projects like roads, bridges, ports and so on. This dropped by 12 per cent from 1.9 lakh crore in the previous year to 1.7 lakh crore this year.

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NDTV, 23 November, 2020, https://www.ndtv.com/business/despite-stimulus-data-shows-the-government-may-be-spending-less-not-more-2328975


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