Centre's Spending and Savings in 2025-26
The Centre's expenditure in the fiscal year 2025-26 was approximately ₹55,000 crore less than the revised estimates. This was mainly due to slower-than-expected capital expenditure and unutilised funds across various ministries.
Reasons for Underspending
- The reduced spending helped the government manage shortfalls in direct tax collection and accommodate additional expenditures under specific categories.
- The original expenditure estimate for 2025-26 was reduced from ₹50.65 lakh crore to ₹49.64 lakh crore.
- Some ministries, including those responsible for water and sanitation, and housing and urban affairs, were unable to spend even their revised allocations.
Impact on Centrally Sponsored Schemes
- Key schemes affected by the lower spending include:
- PM Awas Yojana
- Swachh Bharat Mission
- Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
- National Livelihood Mission
Direct Benefit Transfers (DBT) and Savings
- Efforts to plug loopholes saved part of the budgeted DBT amount.
- Food subsidy transfers through the Public Distribution System (PDS) decreased to ₹1.5 lakh crore from ₹1.63 lakh crore.
- The LPG subsidy programme's expenditure fell to ₹12,430 crore from ₹18,068 crore due to prompt beneficiary list revisions.
- Fertiliser subsidies under DBT increased to ₹1.9 lakh crore from ₹1.78 lakh crore due to high global input costs.
- Overall, DBT declined by 5% to ₹6.6 lakh crore from ₹6.9 lakh crore in the previous year.
The exact savings will be confirmed when the Centre releases the annual numbers on May 31.
