Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessBudget

Budget 2015-16: Plan expenditure to get a big boost, says IDFC Securities

Low fuel prices have cut down on fuel subsidy. Excise revenues to go up with economy picking up.

February 26, 2015 / 06:40 PM IST

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)

first published: Feb 26, 2015 06:40 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347