The government is currently giving a serious thought to mobilising fresh resources, but the options open to it are hard to find.

In the last budget presented to the Vidhan Sabha, finance minister Praduman Singh was optimistic about state finances. However, the picture now emerging is shocking. He had talked about financial discipline when he had left Rs 112.34 crore as the budget deficit. His estimates for the year now seem to have gone awry.

Total government borrowings have shot up to Rs 36,000 crore. The interest budget is huge and nearly 80 per cent of yearly revenue goes in meeting non-plan spending.

It seems that the chief minister has not yet taken full control of the finances, with the result that the ground under him is fast giving away. For persons above the age group of 55 years he has spread a safety net by announcing Rs 200 per month. This one act has become a huge burden on the state's weak finances. With severe drought conditions looming over Rajasthan, it is time to make a reality check. Curiously, the government is giving an impression that the Centre is not on its side. The reality is that the Centre has lent a helping hand to the government regardless of political differences. The Union finance minister has assured further help to the government in meeting the famine situation.

The government has written to the Centre to allow it to raise more loans (above the Rs 800 crore level) and there are indications that its plea will be accepted. It also wants the Centre to stagger repayment of loans in view of impending famine spending. Total famine expenditure has been put at around Rs 3,000 crore and unless the Centre comes to the state's rescue, such high expenditure is not possible. "My resources position is indeed tight and there is no possible avenue left for the government to tap fresh resources," says the chief minister.

The government, nevertheless, is going for fresh public borrowings to meet its financial commitments. The major source of revenue- sales tax- fetched Rs 2,425 crore in the last fiscal. This year's collections could rise to Rs 2,800 crore. Only recently the government has announced its new excise policy that aims to get more from the sale of liquor. But opposition is building up against public drinking.

The government's biggest worry is the loss of revenue following the abolition of octroi. Losses have been put at around Rs 400 crore per year.

It is taking another look at the abolition of octroi by the Shekhawat government. "Surely we are not in a position to lose such big revenue," says a senior government official.

Pressuring state finances further is the growing tendency among government employees to seek premature retirement. There is a growing feeling in the government employees that due to weak finances, the perks available on retirement, might be curtailed.

For the government there is no option but to downsize the plan. There is no fun in having a large plan size when resources are scarce. There are political exigencies that come in the way to reduce the plan expenditure.

But reality has to be taken into account in these fiscal matters which have a large bearing on future.

The government, analysts say, should also privatise the entire tourism industry and sell its properties. At the same time the government's big estates should also be sold off to raise resources.