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Finance Ministry asks ministries to limit spending as per revised targets amid Covid-19 crisis
Nov-26-2020

Amid moderating revenues due to the COVID-19 crisis, the Finance Ministry has asked ministries and departments to restrict their expenditure for the remaining months of the current fiscal as per the Revised Estimates (RE) target. The Budget meetings for fixing Revised Estimates for 2020-21 and Budget Estimates (BE) for 2021-22 were held between October 16 and November 12.

The Finance Ministry said that ministries and departments are requested to strictly adhere to the expenditure ceiling decided in the meeting. It added ‘Financial Advisers may ensure that the expenditure is maintained within the ceiling decided during the meetings for RE 2020-21’.

Meanwhile, the government’s fiscal deficit rose to Rs 9.14 lakh crore, about 114.8 per cent of the annual budget estimate, during the first six months of the current financial year, mainly on account of poor revenue realisation. The total expenditure incurred by the government was Rs 14,79,410 crore (48.63 per cent of BE 2020-21), out of which Rs 13,13,574 crore was on revenue account and Rs 1,65,836 crore on capital account.

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