This is in contrast to the improvement in Union finances witnessed towards the close of the first half of this fiscal. At the end of September, the Centres fiscal deficit was at Rs 57,746 crore. This was only marginally more than Rs 57,262 crore recorded in the same month last fiscal.
The deterioration is mainly on account of higher expenditure towards drought relief and no additional realisation from divestment in October. Revenue realisation, though better, failed to keep pace with increasing non-Plan outgo.
Non-Plan expenditure during April-October 02 at Rs 1,43,990 crore, representing an increase of Rs 23,835 crore over the outgo incurred during the same period last year. Similarly, the total expenditure, including Plan and non-Plan, was up more than Rs 32,000 crore. However, total receipts, including tax and non-tax revenue, at Rs 1,24,849 crore showed only an increase of Rs 20,145 crore over collection in H1 of 2001-02.
The increasing revenue-expenditure mismatch was also reflected in higher market borrowing and higher revenue and primary deficits. Market borrowings at the end of October was Rs 73,825 crore as against Rs 65,218 crore in the year-ago month.