MeitY’s budget up by 32.5% to Rs 21,937 cr in FY25
Parliament panel questioned the Ministry of Electronics & IT over under-utilisation of funds in key tech schemes like PLI and semiconductor mission and urged better planning and accountability.
ADVERTISEMENT
The Ministry of Electronics and Information Technology (MeitY) received a 32.56% hike in its budget allocation for FY2024-25, taking the total outlay to Rs 21,936.90 crore. However, as per the report presented in Lok Sabha in July 24, 2025, by the Parliamentary Standing Committee on Information and Communications Technology has revealed significant underutilisation of funds in the previous financial year, prompting criticism of the ministry's planning and execution capabilities, by the parliamentary committee.
The committee’s fourth report (Eighteenth Lok Sabha) on ‘Demands for Grants’ highlights that out of Rs 16,549.04 crore allocated to MeitY in FY2023-24, the ministry ended up spending only Rs 12,847.12 crore, surrendering Rs 1,574.13 crore from the revised estimate.
The shortfall was particularly glaring in two flagship schemes. The Production Linked Incentive (PLI) Scheme and the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem together accounted for Rs 1,097.73 crore— almost 70% of the unutilised funds. Specifically, while Rs 1,503.36 crore had been earmarked for semiconductor development, only Rs 681.11 crore was actually spent, amounting to a 55% surrender of the allocated funds.
The committee further stated that surrendering over half the allocated amount reflects “improper planning” by the ministry. It stressed that such funds could have been reallocated to other ministries with better utilisation efficiency.
"Surrendering of funds beyond 50% of the funds allocated reflects upon improper planning by the Ministry. The Committee may be apprised of the reasons for non- utilization of precious allocated funds which could have been allotted to other Ministries for its effective utilisation. The Committee therefore urge the Ministry to ensure that realistic projections are made in future as far as possible and ensure optimal utilization of funds by way of better planning and robust monitoring mechanism with learnings from past experience,” it was said.
Read more: MeitY gears up to tackle spam surge on OTT messaging apps; stakeholder consultations likely soon
In its response, MeitY acknowledged the underspending and attributed the shortfall to the performance of private sector participants, on whom the disbursement of incentives is contingent. However, the committee rejected this reasoning, asserting that the ministry holds a larger responsibility in overseeing effective implementation and should not deflect accountability.
"It is noteworthy that expenditure/disbursement of incentives under these two schemes is dependent upon what the private companies are able to deliver. So, it is beyond the control of the Ministry to ensure optimal utilisation of the allocated fund under these schemes. However, keeping in view of the underutilisation of funds during the last 2-3 years and to ensure optimum utilisation of funds under PLI and Semiconductor schemes, the estimates received from industrial units are being reduced substantially at the Budget Estimate stage itself," the Ministry said.
To prevent recurrence, MeitY said it is now making more conservative estimates at the Budget Estimate (BE) stage and reviewing all schemes weekly under the chairmanship of the Secretary.
The panel futher requested the minutes of the last five such meetings and a detailed explanation of steps taken to improve fund utilisation, particularly in PLI and semiconductor initiatives.
Notably, MeitY’s budget has been on a sharp upward trajectory over the past five years— from Rs 6,899.03 crore in FY2020-21 to the current Rs 21,936.90 crore in FY2024-25.
Read more: MeitY report on Digital Competition Bill awaited; stakeholders demand startups, MSMEs exemption
A comparative analysis of the Budget Estimate of the Ministry from FY 2020-21 to FY 2024-25 shows an increasing trend of allocation viz.Rs.6,899.03 crore, Rs.9,720.66 crore, Rs.14,300 crore, Rs.16,549.04 crore and Rs.21,936.90 crore, respectively. The Financial Year-wise allocation percentage indicates variations from 3.68% in 2020-21, 40.90% in 2021-22, 47.11% in 2022-23, 15.73 % in 2023-24 and 32.56% in 2024-25.
Out of the total outlay of FY24-25, Rs 21,356 crore has been earmarked for Revenue Expenditure and Rs 581 crore under Capital Expenditure.
The committee concluded by urging MeitY to strengthen coordination with private stakeholders, adopt realistic budgeting, and ensure optimal utilisation of public funds through robust planning and continuous monitoring.
