Question : Spending by States

(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?

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:
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

(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:
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

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