Most government departments, barring the ones directly handling the impact of the coronavirus pandemic, are staring at restricted budget allocations for the current fiscal year, despite finance minister Nirmala Sitharaman on Friday saying less government spending may drag economic recovery. Speaking at the 18th edition of the Hindustan Times Leadership Summit on Friday, Sitharaman said: “I have to be conscious that if I don’t spend now, then the stimulus is meaningless. If I don’t spend now, the revival will get deferred and we cannot afford that.
However, a senior government official speaking under condition of anonymity said most government departments have been asked to cut down their expenditures this fiscal. There is significant expenditure switching happening among government departments, the official added on condition of anonymity.
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