The Union government spent ₹54,067.45 crore more than what was approved by Parliament in 2022-23, mainly due to higher debt repayments.

Of this amount, about ₹53,871 crore or more than 99% came from excess spending on debt repayment, while the railways accounted for the remaining ₹196.45 crore under capital expenditure, according to a report tabled by the Public Accounts Committee (PAC) in Lok Sabha on Wednesday.

The excess spending was reported under the Department of Economic Affairs in the finance ministry and the ministry of railways, and will now require Parliament’s approval for the regularization of the spending.

The government presents the revised estimates for a given year when it presents the budget on 1 February for the next financial year starting April. However, the spending and receipts in March are reflected in the actual figures presented in the next budget.

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The excess spending occurred despite the government obtaining supplementary grants during the financial year, raising concerns over the accuracy of budget estimates and expenditure control, said the PAC report, chaired by Congress’s member of parliament KC Venugopal.

In the case of the finance ministry, a supplementary provision of over ₹70,762 crore was approved, but actual spending still exceeded the total allocation by a wide margin. Similarly, the railways secured an additional ₹882 crore through supplementary grants but ended up overshooting its allocation by ₹196.45 crore, it said.

Spending trends across departments The PAC is a parliamentary panel that examines government spending and ensures that public funds are used in line with Parliament’s approval.

The PAC report noted that the Department of Defence Services did not incur any excess expenditure for the third consecutive year since 2020-21, reflecting continued fiscal discipline. It also observed that the Department of Posts has kept its spending within approved limits for six straight years since 2017-18.

The ministry of finance explained that the excess under debt repayment was influenced by multiple factors, including exchange rate variations, claims from investors for repayment of matured bonds, fluctuations in state government cash withdrawals, and payment schedules linked to international financial institutions, according to the report. These factors made precise estimation of repayment requirements difficult, particularly in instruments such as treasury bills and external debt obligations, it said.

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In the case of the railways, the excess expenditure was attributed to payments arising from court decrees that were not anticipated at the time of budgeting. The ministry, as per the PAC report, said that while provisions were made at the budget stage and through supplementary allocations, actual liabilities turned out to be higher, leading to the overshoot.

PAC calls for tighter fiscal discipline The PAC flagged that excess expenditure has been a recurring issue across ministries, even though rules require that spending should remain within the limits approved by Parliament unless additional funds are formally authorised. It noted that such instances persist despite the availability of digital tools and systems that enable real-time monitoring of expenditure.

The committee also said that excess spending continued even after large supplementary grants were approved. It said that budget estimates and revised estimates need to be prepared with greater realism to avoid repeated overspending.

Calling for improved fiscal discipline, the PAC recommended closer and continuous monitoring of expenditure patterns, along with strengthening of internal control mechanisms. It also emphasised the need for better forecasting of liabilities such as debt repayments and court-ordered payments, and urged ministries to adopt data-driven systems to track expenditure and anticipate deviations.

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The committee underlined that adherence to the General Financial Rules, 2017 is essential to ensure that government spending remains within authorised limits and to uphold parliamentary control over public finances.