Lok Sabha Question No. 3041 (UNSTARRED), answered on 2018-01-05
Subject: Spending by States
Ministry: FINANCE
Asked by: K. MARAGATHAM

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE FINANCE COMMISSION DIVISION

## LOK SABHA

## UNSTARRED QUESTION NO. 3041

Answered on January 05, 2018/ Pausha 15, 1939 (Saka)

## Spending by States

## 3041. SHRIMATI K. MARAGATHAM

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has taken cognizance that spending by States grows at slowest pace in 13 years and if so, the details thereof;
- (b) whether during the current financial year 17 major States have budgeted for a 10.8  percent rise in spending as compared to 19 percent last year and if so, the details thereof;
- (c) whether the Government's spending is expected to grow 7.8 per cent this year which is less than half of the 17 per cent record last year and if so , the details thereof;
- (d) whether  the  Government  has  noted  that  the  pace  of  increase  in  revenue  spending  at  7.8 percent is lower than capital spending which creates assets and generate jobs; and
- (e) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE

## (SHRI P. RADHAKRISHNAN)

- (a) As  per  information  received  from  RBI,  growth  rates  of  the  aggregate  expenditure  of  States during the last 13 financial years and the current financial year are given in the table below:
- (b) Total expenditure of all the States excluding North-Eastern and Himalayan States is projected to increase 21.2% in 2016-17 (RE) over 2015-16 and 7.8% in 2017-18 (BE) over 2016-17(RE).
- (c) to (e) Based on the Union Budget, growth of the revenue expenditure, capital expenditure and total expenditure of the Central Government estimated during 2016-17 (RE) and 2017-18 (BE) is given in the table below:

|   Sl. No. | Financial Year   |   Growth in per cent |   Sl. No. | Financial Year   |   Growth in per cent |
|-----------|------------------|----------------------|-----------|------------------|----------------------|
|         1 | 2004-05          |                  7.5 |         8 | 2011-12          |                 16.5 |
|         2 | 2005-06          |                 10.6 |         9 | 2012-13          |                 13.2 |
|         3 | 2006-07          |                 16.5 |        10 | 2013-14          |                 11.6 |
|         4 | 2007-08          |                 15.6 |        11 | 2014-15          |                 19.4 |
|         5 | 2008-09          |                 17.8 |        12 | 2015-16          |                 16.2 |
|         6 | 2009-10          |                 14.4 |        13 | 2016-17 (RE)     |                 23.2 |
|         7 | 2010-11          |                 14.6 |        14 | 2017-18 (BE)     |                  8.4 |

| Item                |   Growth in per cent during 2016-17 (RE) |   Growth in per cent during 2017-18 (BE) |
|---------------------|------------------------------------------|------------------------------------------|
| Revenue Expenditure |                                     12.8 |                                      5.9 |
| Capital Expenditure |                                     10.6 |                                     10.7 |
| Total Expenditure   |                                     12.5 |                                      6.6 |