Government spends only 40% flagship schemes' funds in 9 months
What's the story
The Indian government has reportedly spent only 40% of the budgeted amount for its major schemes in the first nine months of the current fiscal year. The data pertains to 53 flagship schemes, each with a budget estimate of ₹500 crore or more for 2025-26. The report by The Times of India highlights that the total utilization is now likely to remain under 75% by the end of this financial year.
Budget cuts
Few schemes with unchanged revised estimates
Of the 53 schemes, only three had their revised estimates remain unchanged from the original budget allocations. These are infrastructure maintenance under the health and family welfare ministry, Indira Gandhi National Widow Pension Scheme, and pre-matric scholarship for Scheduled Castes. In contrast, revised allocations were higher than budget estimates for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), post-matric scholarships for Scheduled Tribes and the National Mission on Natural Farming.
Budget reductions
Original budget estimates vs revised allocations
The original budget estimates for these 53 schemes were over ₹5 lakh crore. However, revised allocations have been reduced to under ₹3.8 lakh crore, about 74% of the initial outlay. Actual fund releases between April and December stood at just over ₹2 lakh crore, which is 41.2% of the budgeted amount and 55.4% of revised estimates.
Fund reductions
Sharp cutbacks in several schemes
Several schemes have seen sharp cutbacks, with revised allocations falling below 40% of their original budgets. These include PMKSY-Command Area Development and Water Management, PM eBus Sewa, Dharti Aaba Janjatiya Gram Utkarsh Abhiyan, Jal Jeevan Mission/National Rural Drinking Water Mission, among others. In six of these cases, fund releases so far are below 10% of the original budget.
Budget underutilization
High-value schemes with limited spending
Among high-value schemes with budget allocations over ₹2,000 crore, spending has been especially limited. The Jal Jeevan Mission/National Rural Drinking Water Mission, budgeted at ₹67,000 crore, saw releases of only ₹31 crore in the first nine months. PM Schools for Rising India recorded spending of ₹473 crore against a budget of ₹7,500 crore, while Pradhan Mantri Anusuchit Jaati Abhyuday Yojana utilized just ₹40 crore out of its allocated amount of ₹2,140 crore.