Centre may save up to Rs 80,000 crore in FY23: Report

This means that the central government will save over 2% on the Rs 39.4 lakh crore Budget

The Centre is likely to save up to Rs 80,000 crore this financial year as various ministries and departments have not utilised allocated funds because of tardy spending by states under some of the Centrally Sponsored Schemes (CSS). This means that the central government will save over 2 per cent on the Rs 39.4 lakh crore Budget, giving the government some fiscal room to absorb any additional demand.

"Savings from unused funds would be about Rs 80,000 crore, which will make up for additional expenditure," a senior official told The Economic Times.

According to the report, the Ministry of Civil Aviation had spent just 4 per cent of its Rs 10,667 crore FY23 allocation by August, followed by the Ministry of Petroleum & Natural Gas (5 per cent), the Department of Pharmaceuticals (7 per cent) and the Ministry of Women and Child Development (6 per cent). Meanwhile, the Department of Telecommunications reportedly spent 13 per cent of the allocated funds, while the Ministry of Electronics and IT and the Ministry of Education are said to have spent 14 per cent and 19 per cent, respectively.

Overall, the Centre is said to have spent 35.2 per cent of the FY23 Budget by the end of August compared to 36.7 per cent in the same period in FY22.

The news comes a week after the government slashed its market borrowing target for FY23 by Rs 10,000 crore, indicating buoyant tax collections which would be enough to bear Rs 44,762 crore additional expense on free ration distribution.

In addition to the Budgeted collection from direct and indirect taxes, the government is also expecting gains from the windfall profit tax on oil that was levied from July 1.

In a statement, the finance ministry said the government will do total borrowing of Rs 5.92 lakh crore during October-March period of the current fiscal, including from issuance of its maiden Sovereign Green Bonds of Rs 16,000 crore.