The fiscal deficit at the end of the first-quarter of current fiscal totalled Rs 25,073 crore, down from Rs 33,512 crore as recorded on June 30, 1999. The other critical parameters like revenue deficit and primary deficit too manifested improvements on the fiscal front.

According to the figures compiled by the Controller General of Accounts (CGA), the government received a total revenue of Rs 30,349 crore during the first three months, up from Rs 23,967 crore during the corresponding period last year. The revenue realisation has jumped by more than 26 per cent during the three-month period pushing down revenue deficit to Rs 16,406 crore from Rs 24,817 crore recorded as on June 30, 1999.

Although the government has not been able to offload equity of the public sector enterprises to raise non-tax revenue, the total receipts during the period worked out to be Rs 32,010 crore, up from Rs 25,143 crore at the end of June 1999. The performance would have been much better had the government been able to offload equity of the public sector enterprises during the first quarter.

The government proposed to raise Rs 10,000 crore from sale of public sector undertakings and their equity during the course of the current financial year.

On the other side, contrary to general perception, the Union government remained successful in keeping the non-Plan expenditure under tight control. The non-Plan expenditure, which mainly covers defence, interest payments, salaries and subsidies, worked out to be Rs 38,374 crore, down from Rs 43,858 crore during the corresponding period last year.

The expenditure compression witnessed during the first quarter was mainly on account of the measures announced in the Union budget for 2000-01 for reducing subsidy and the directives and guidelines issued by the finance ministry to other ministries and departments. Finance minister, Yashwant Sinha had told the financial advisors that he would not entertain additional grants and impressed upon them the need for strictly adhering to the expenditure targets set in the Union budget.

The Plan expenditure, however, has remained buoyant manifesting government's commitment to invest in productive segments of the economy.

According to CGA estimates, Plan expenditure during the first three months of the current financial year amounted to Rs 18,709 crore, up from Rs 14,797 crore. The increase in Plan expenditure works out to be more than 26 per cent.

Mainly on account of the expenditure compression on the non-Plan side, the total expenditure during the first quarter was Rs 57,083, marginally down from Rs 58,655 crore recorded during the corresponding period last year.

As a result of improvement in the overall financial position of the union government, primary deficit as on June 30, 2000 worked out to be Rs 10,832 crore, down from Rs 16,186 crore at the end of first quarter in the previous financial year.