Moneycontrol Bureau
Plan expenditure for FY16 Union Budget is expected to go up by 16% due to lower fuel subsidy outgo and higher excise revenues, says IDFC Securities, a Mumbai based brokerage house.
This growth comes on the back of expected increase of 3.3% in FY14-15 in plan expenditure. For the first nine months of FY14-15, plan expenditure has gone up by 0.4% only. Plan expenditure showed a quantum jump in FY08-09 when it reported an increase of 34.2%.
The note to the clients by IDFC says, “With fuel subsidy at Rs250bn (US$ 60/ bbl), we expect subsidy outgo to decrease to Rs2142bn in FY16 from Rs2420bn in FY15. While food subsidy is expected to increase to Rs1250bn from Rs1150bn in FY15, fertilizer subsidy is expected to decrease to Rs550bn from Rs770bn on the back of lower international prices.”
Eight key schemes of the government that will get lion’s share of the plan expenditure, according to IDFC Securities:
• Housing (Housing for all)• Skill India (Vocational training)• Improve irrigation facilities to farms through linking of rivers or micro irrigation• Inland waterways• ‘Sagar Mala’ project to connect ports to the hinterland• Increase public private investment in infrastructure • 100 smart cities, speeding up work on Delhi Mumbai Industrial Corridor (DMIC)• Clean India (Swachchh Bharat)
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