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72 Economic Survey 2021-22

Figure 21: Trends in General Government Debt and Deficits (as a per cent of GDP)

18 100
89.7 89.3
16 90
14 13.3 80
74.6
12
Per cent of GDP 10 8 5.8 5.8 7.1 9.4 10.2 60
69.8
70.8
50
40

70 Per cent of GDP
4 6 5.6 30
20
3.9
2 2.7 2.5 10
0 0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
RE BE
Gross Fiscal Deficit Gross Revenue Deficit Outstanding liabilities of General Government (RHS)

Source: RBI Handbook of Statistics for Indian Economy;
BE: Budget Estimates; RE: Revised Estimates

POLICY MEASURES TO ENHANCE THE EFFICIENCY OF
GOVERNMENT SPENDING

2.49 While restructuring expenditure is a significant aspect of fiscal policy, enhancing the
efficiency of Government spending is also important. Public procurement, which involves
purchase of goods and services by the Government with an aim to not only carry day-to-day
tasks but to also create social and economic infrastructure, is an important component of the
Government expenditure. Government has undertaken consistent efforts to boost the efficiency
of public procurement policy. Two of such reforms viz. Government e-Marketplace for routine
procurement and new guidelines for reforms in Public Procurement and Project Management
have been discussed in this section.

Government e-Marketplace (GeM)

2.50 The Government in 2016 had set up a dedicated e-market known as Government
e-Marketplace (GeM) for purchase of certain standard day to day use goods. This is a simple,
transparent and completely digital process for procurement. The General Financial Rules 2017
mandates all Ministries and Departments to procure Goods and Services available on GeM from
GeM. The procedural changes in the procurement method after the introduction of GeM are
given below (Table 8).