After around 20 per cent YoY decline in April, Central Govt capex increased 7.5 per cent in May, which resulted in cumulative decline of 12 per cent in the capital expenditure in the first two months of ongoing fiscal. Total capex had increased 3 per cent during April-May 2016 in the preceding fiscal.  Plan purpose capex declined 13 per cent, whereas non-Plan spending showed 11 per cent decline. Defence capital outlay was stepped up from Rs 2,415 crore in April to Rs 3,708 crore in May. Cumulative Defence Outlay of Rs 6,123 crore during April-May was 18 per cent of total capex disbursed during the same period.  Plan account capex forms around a half of total capital expenditure of the Central Expenditure.  Defence capital outlay is a major non-Plan capex disbursement.

At aggregate level, the Central Govt fiscal deficit, i.e. net borrowing to meet shortfall of receipt to meet disbursement needs, increased 10 per cent during April-May, following 13 per cent increase in expenditure and 27 per cent increase in non-debt receipt. Non-Plan expenditure showed 3 per cent growth, whereas Plan expenditure soared 46 per cent: Revenue plan was up 71 per cent. On receipt side, tax receipt showed 150 per cent increase, whereas non-tax revenue receipt was down 51 per cent. Reflecting imbalance between non-debt receipt and disbursement in the initial months, net borrowing of the Central government during April-May financed 77 per cent of the expenditure during these months, against 27 per cent assessed for the year.

Central Govt Capex: April-May (Rs crore)
Non-Plan Plan Total
2016-17 2015-16 2016-17 2015-16 2016-17 2015-16 % increase
April 12896 15159 7939 11050 20835 26209 -20.5044
May 4374 4209 8022 7325 12396 11534 7.473556
Total Apr-May 17270 19368 15961 18375 33231 37743 -11.9545


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