The Union Budget 2019-20 presented by the FM Piyush Goyal to the Parliament on the 1st of February 2019 saw a 13.31% rise in total expenditure at Rs 27.84 trillion against Rs 24.57 trillion in fiscal 2017-18. In fiscal 2019-20, the total expenditure of the Government is estimated to be at 13.3% of GDP while it was 15.8% of GDP in fiscal 2009-10.The growth of total expenditure is expected to decline to 8.4% and 11.6% respectively over previous year in 2020-21 and 2021-22.

Budgeted revenue expenditure in 2019-20 is Rs 24.47 trillion which reflects an increase of Rs 3.07 trillion or 14.4% against 2018-19. The revenue expenditure was estimated at 87.9% of the total expenditure. The major components of the revenue expenditure of the Government include Interest payments and debt servicing (23.89% of total expenditure), Subsidies (10.66% of total expenditure), Salaries and Pensions (6.26% of total expenditure), Defence expenditure (10.9% of total expenditure), grants and Loans to State Governments and others (16.98% of total expenditure).

In 2019-20, expenditure on Interest Payments and Debt Servicing is budgeted to rise by 13.19% to Rs 6.65 trillion. Expenditure on subsidies is budgeted to increase by 15% to Rs 2.96 trillion, which is 1.41% of GDP. Expenditure on Defense and Services is to rise by 6.96% to Rs 3.05 trillion and on pensions to increase by 4.61% (0.82% of estimated GDP for the year).

Food subsidy has risen on account of higher provision made for food subsidy under National Food Security Act,expenditure on pension has increased as higher requirement under Defence Pensions. Grants and Loans to States rose 20.84% on higher requirements under compensation to States for revenue losses on roll out of GST, Grants to rural and urban bodies and releases under Samagra Shiksha

The provision for capital expenditure in 2019-20 is Rs 3.36 trillion, which is 12.1% of the total expenditure estimated for the year and higher by 6.21% against 2018-19. Capital expenditure expected growth in 2020-21 and 2021-222 over previous year will be 15% and 20% respectively. As a percentage of GDP, capex is expected to be at to 1.8% in 2021-22.against 1.6% of GDP in 2019-20.

Total Capital Expenditure on railways is budgeted to rise 26% to Rs 75- billion in 2019-20.

Expenditure Budget 2019-20 (Rs bn)

INR Bonds

Services