There are several welcome steps announced in the Union Budget 2019. The government’s intent to focus on infrastructure spending with emphasis on digital economy and job creation are significant announcements. The cornerstone of Budget 2019 lies in aspirations of a new India becoming a $5 trillion economy over the next few years. Key pillars on the roadmap to becoming so include ensuring an accelerated economic development and related job creation. One of key factors in achieving this goal will be developing India’s talent pool to meet requirements of various sectors. Infrastructure development across the country in road, highways, railways, port, housing, water management and tourism were called out as contributors to this vision.

The Numbers

Budget 2019-20 reflects the Government’s firm commitment to substantially boost investment in 
Agriculture, Social Sector, Education and Health. This is substantiated by increase in expenditure of  Rs 3,29,114 crores over RE (2018-19) while keeping the fiscal deficit at 3.3% of GDP.

The government is estimated to spend Rs 27,86,349 crore during 2019-20.  This is 13.4% more the revised estimate of 2018-19.  Out of the total expenditure, revenue expenditure is estimated to be Rs 24,47,780 crore (14.3% growth) and capital expenditure is estimated to be Rs 3,38,569 crore (6.9% growth). 

The government receipts (excluding borrowings) are estimated to be Rs 20,82,589 crore, an increase of 14.2% over the revised estimates of 2018-19.  The gap between these receipts and the expenditure will be plugged by borrowings, budgeted to be Rs 7,03,760 crore, an increase of 10.9% over the revised estimate of 2018-19.