Rises to Rs 57,262 crore

Fiscal deficit up 34% in H1

Our Economic Bureau

New Delhi, Oct 31: The Union government’s fiscal deficit at the end of the first six months of the current fiscal jumped up by more than 34 per cent to Rs 57,262 crore from Rs 42,592 crore during the corresponding period last year.

The government has run a fiscal deficit of 49.2 per cent of the total amount earmarked in the Budget during the first half of the 2001-02 as against 38.3 per cent during April-September 2000-01.
The deterioration in the fiscal position has been mainly on account of poor revenue realisation during April-September 2001-02. Revenue receipts during the period amounted to Rs 79,203 crore, down from
Rs 82,898 crore in the corresponding period last year. Tax revenue (net) was down to Rs 48,632 crore from Rs 54,082 crore in the like period last year.

On the expenditure side, non-Plan expenditure has continued to grow — it amounted to Rs 1,07,152 crore which was 38.7 per cent of the budgeted amount. Non-Plan expenditure during the first half of last year totalled Rs 94,408 crore amounting to 37.7 per cent of the allocated amount.

Plan expenditure during April-September 2001-02 worked out to Rs 37,885 crore (39.8 per cent) as against Rs 35,707 crore (40.5 per cent) during the corresponding period last fiscal. The Plan expenditure has not been growing fast enough although the government has promised to give a boost to economy by loosening its purse strings.

As a result of poor revenue realisation and rise in expenditure, the revenue deficit at the end of September 2001 has increased to Rs 43,615 crore (55.3 per cent) as against Rs 26,306 crore during the corresponding period last year. Primary deficit, too, is up from Rs 4,577 crore during April-September 2000 to Rs 13,619 crore at the end of first half in the current fiscal.

Although the finance ministry has made a provision of Rs 5,000 crore for additional Plan expenditure linked to disinvestment receipts, nothing could be realised from sale of government equity in public sector companies during the first half. The government, it may be mentioned, has proposed to raise Rs 12,000 crore from disinvestment during the current fiscal.