India Government Spending and Stimulus to be Sharply Cut

December 18th, 2010
in News, Background

New Delhi (The Economic Times):  The central government expenditure on wages and purchase of other goods and services is set to drop sharply in relative terms in 2010-11 from a year ago, indicating a reduction in the state-funded fiscal stimulus to keep the economy growing after the financial crisis. 

Follow up:

The government had stepped up expenditure to keep the economy afloat after the crisis caused a near-freeze in discretionary expenditure by both corporates and individuals.

A government analysis -- an economic and functional classification of the central government budget -- shows the government consumption expenditure, or spend on wages and salaries and commodities and services for current use, is set to drop marginally to Rs 2.24 lakh crore in 2010-11 from Rs 2.27 lakh crore in 2009-10.

The decline in the government consumption expenditure is much sharper as a percentage of GDP, dropping to 2.94% of likely GDP in 2010-11 from 3.64% of GDP in the year before, assuming the gross domestic product in the second half of the current year grows at the same rate as the first half, at 22% in terms of current prices.  Read more.....

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved