Page 89 - economic_survey_2021-2022

Fiscal Developments 63

2.29 Government has focused on improving the quality of expenditure in both 2020-21 and
2021-22 BE. Capital expenditure registered a YoY growth of 26.5 per cent in 2020-21 PA,
as it increased from 1.6 per cent of GDP in 2019-20 to 2.2 per cent of GDP in 2020-21 PA.
The emphasis on capital expenditure was envisaged to continue in 2021-22 BE to reach a
budget estimate of ` 5.54 lakh crore i.e. 2.5 per cent of GDP. This translates into a growth of
34.5 per cent and 30.5 per cent over 2020-21 BE and 2020-21 PA, respectively. As a proportion
of total expenditure, capital expenditure has been estimated to increase from 12.1 per cent in
2020-21 PA to 15.9 per cent in 2021-22 BE (Figure 16). The higher capital expenditure with
a focus on infrastructure spending in 2021-22 BE will have a multiplier effect on the ongoing
economic recovery.

Figure 16: Share of Revenue and Capital Expenditure in Total Expenditure

17 89
16 88
15 87
Per cent 14 86 Per cent
85
13
12 84
11 83
10 82
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 PA 2021-22 BE

Capital Expenditure/Total Expenditure (%)
Revenue Expenditure/ Total Expenditure (%) (RHS)

Source: Union Budget Documents & O/o CGA
BE: Budget Estimate, PA: Provisional Actuals,
2.30 Apart from budgetary spending, Extra Budgetary Resources (EBR) have also been
mobilised to finance infrastructure investment since 2016-17. Government has raised EBRs of
` 6.04 lakh crore from 2016-17 to 2020-21, of which ` 1.43 lakh crore have been mobilised from
the issue of Govt. fully serviced bonds and ` 4.61 lakh crore have been raised through financial
support extended through loans from NSSF. The Budget 2021-22 focusses on improving fiscal
transparency, as the EBRs for 2021-22 have been estimated at ` 30,000 crore. Further, in
2020-21 RE, the Government has estimated to pre-pay around ` 1.5 lakh crore of outstanding
food subsidy related loans of the Food Corporation of India. In 2021-22 BE, the food subsidy
requirements of FCI has been provided in the Budget.

Transfer to States

2.31 The Union Government has accepted the recommendations made by the Fifteenth Finance
Commission (XV-FC) in its Report for the award period 2021-22 to 2025-26 relating to the grants-
in-aid amounting to ` 2,33,233 crore to the States during 2021-22 for Post Devolution Revenue
Deficit grant, grants to Local Bodies, Health sector grant and Disaster Management grants.