Government expenditure may increase : CMIE

A Centre for Monitoring Indian Economy (CMIE) says that the Union government expenditure is expected to overshoot by 21 per cent this fiscal, in a report. Farmers' debt relief package, additional subsidies on petroleum and fertiliser products are some of the factors would affect the rise in government expenduture. Apart from that some other factors too includued in the report these are - Sixth Pay Commission's recommendations and interest rates on government debt papers. The total expenditure budgeted at Rs.7,50,884 crore for 2008-09, which is 5.2 per cent more than the actual planned expenditure in 2007-08. The total government expenditure, including expenditure on debt relief package and outgo on account of Sixth Pay Commission's recommendations for 2008-09 stands at Rs.7,81,448 crore, the CMIE report said.