When expenditure as percentage of GDP is low, how you spend more
In every year, budgetary outlay in all most all countries increases in nominal term.So India ‘s budget. It should be evaluated as percentage of GDP or taking inflation into account.
But what Narendra Modi fails to give guarantee that our budget size as percentage of GDP is very low compared to other countries and donot increase
. When the size of the budget does not increase, expenditures in real terms do not increase.If increase in some cases, it is trimmed in certain cases which people don’t know and deceived by nominal increase and publicity blitzkrieg.
For example the the size of budget for 2024-25 is estimated to be Rs49. 06 lakh crore while nominal GDP is estimated to be Rs 327.72lakh crore . So budget size as percentage of GDP is 13.70% in 2024-25 down from 15.13% in 2023-24. It was 17.7% in 2020-21, 15.93% in ,2021-22, 15.34%in 2022-23.
India’s budgetary outlay is low when compared with
United States 36.26% ; France. 58.34% ; Japan. 44.09 %; United Kingdom. 44.3 %; Sweden. 47.32%.
Government Spending ( budgetary outlay)to GDP in India averaged 15.11 percent of GDP from 1970 until 2023, reaching an all time high of 19.42 percent of GDP in 1986 and a record low of 11.81 percent of GDP in 1970.
Dr Santosh Kumar Mohapatra.