During the UPA government’s second term, the ministry exceeded its allocated budget. The actual expenditure came out to be approx. 4112 crore rupees while the average budget allocated was around Rupees 3457 Crore. Hence, exceeded the budget by 19%. Further, during the tenure of the Modi Government in two years, FY15 and FY19, the average allocation of the budget was around 4523 crore rupees. However, the expenditures were incurred around 5312 Crore Rupees, exceeding the budget by 17.4%.
India was experiencing an impeccable growth in the aviation market in the year 2018, in spite of witnessing hikes in oil prices and an unexpected fall in Indian rupee.
Not just this, there has been a tremendous increase in the domestic air traffic – the increased number of passengers from 4.53 crore in the year 2009-10 to 14.03 crore in the last fiscal is the proofs of double-digit growth, amid this, the Governments have been out of budget ended up exceeding their allocated budgets.
Following are some Ministries of India and the statistics as per which they have utilized their budget over the past 10 years:
1. Ministry of Civil Aviation
During the period of 2009-2010 and 2013-14 years, the UPA government had allocated Rupees 17,287 crore to the aviation sector; however, the actual expenditure totaled to Rupees 20,563 crore. Comparatively, the Modi Government notched up the expenditure to the mark of Rupees 26564 Crore between 2015-16 against budget estimates of 22616 crores.
As per the experts, the Aviation Sector is heading towards the Financial year 2012 kind of Profit- less growth situation. In the Interim budget, nearly 32% cut in the budget allocation to the Civil Aviation sector was made which amounts to Rupees 4500 Crore.
2. Ministry of Railways
Coming towards the Ministry of Railways, all the operations, maintenance, and expansion of Railways is seen by The Ministry of Railways. With over 14 lakh employees it is the world’s seventh largest employer. This Ministry has overspent its allocated budget in 8 out of 10 years.
An allocation of Rupees 66768 crore has been made for the current fiscal towards the Ministry of Railways. It is imperative to note that since the Financial Year 2013, Indian Railways operating ratio is at the downfall. Indian Railways was spending 90 paise to earn 1 rupee in the FY13 while it got increased to spending 98 paise to earn 1 rupee in the financial year 2018.
Now all the eyes are on the current Finance Minister, Nirmala Sitharaman to experience what she will do to help the sectors in the current unstable time.