Budget 2024: ₹4765768 Crore estimated Expenditure Budget, up 6% From Last Year

Key Takeaways:

• Expenditure budget gives key insights into how the government plans to spend the budget in the upcoming year.
• Capital expenses amount to 23% of the total expenditure budget in FY25.

The total expenditure budget for the financial year 2024-25 (FY25) is ₹4765768 crore as declared by Finance Minister Nirmala Sitharaman in the recently released interim Union Budget. As compared to last year’s expenditure budget of ₹4503097 crore, this year’s expenditure budget is 6% higher. The FM has allocated ₹3654657 crore towards revenue expenses and ₹1111111 crore towards capital expenses this year.

The highest contribution of this year’s budget is going towards the payment for interest on loans taken by the government to date. Another major item of expenditure for the government of India over the past few years is transport.

What Is Expenditure Budget?

The expenditure budget documents are the key document of the Union Budget. These documents paint a complete picture of the planned expenses of the Indian government across various sectors and programs in a financial year.

You can access a ministry-wise summary of budget provisions or view all statements of budget estimates on the official website. Usually, the expenditure profile and demand for grants from different sectors for the upcoming financial year are presented under the expenditure budget document.

Components of the Expenditure Budget Document

1. Capital Expenditure This is the amount of money that the government spends to create assets that add to the capital stock of the economy. Capital expenditures are non-recurring in nature and are used to increase the earning capacity of the government.

2. Revenue Expenditure These include operational expenses incurred to run the government and ongoing schemes and projects, such as payment of wages, pensions, interest, and subsidies. Revenue expenditures are recurring in nature and are used to maintain the earning capacity of the government.

The expenditure budget document also gives the disbursement of revenue and capital expenditure of various ministries and departments in addition to listing estimates for these.

3. Charged Expenditure These expenses are mandatory liabilities of the government of India. For example, the interest on the loan taken by the government is a charged expense. Thus, it does not require parliamentary procedure for voting in Lok Sabha to be approved.

4. Voted Expenditure On the other hand, these expenses comprise revenue and capital expenditures that need to be put to the vote in Lok Sabha for approval.

5. Demand for Grants Each ministry and department prepare demand for grants for the expenditure in the next financial year. These demands can also be accessed in the expenditure budget as they are collectively presented in the Lok Sabha as a part of the Union Budget. Note: According to Article 113 of the Constitution of India, each estimate or proposal to withdraw money from the Consolidated Fund of India must be approved by the Lok Sabha. These proposals are made in the form of demand for grants, and they include both charged and voted expenditures.

Conclusion

The Interim Budget 2024-25 has unfolded with ₹4765768 crore as expenditure budget, reflecting an upward 6% change from the previous financial year. The expenditure budget for FY25 gives insight on the vision of the Indian government for the upcoming year for different sectors and serves as a compass in guiding the nation towards a prosperous future.