Net Borrowings To Finance 71% Of Fiscal Deficit In 02-03

Mumbai, Aug 30: | Updated: Aug 31 2002, 05:30am hrs
Market borrowings continue to be the major source of funding the central governments fiscal deficit.

In 2002-03, net market borrowings would finance 70.7 per cent of the governments fiscal deficit. In 2001-02, net market borrowing had financed 69.4 per cent of the government fiscal deficit as against 61.4 per cent in the preceding year, the Reserve Bank of India said its Annual Report for 2001-02.

It took devolvement/private placements to the tune of Rs 28,892 crore during 2001-02.

The net market borrowings for 2002-03 are budgeted at Rs 95,859 crore which is higher that the revised estimates for 2001-02 at Rs 91,480 crore.

Financing through other liabilities would increase to 28.7 per cent in 2002-03 from 26.1 per cent and external assistance would contribute 0.6 per cent as against 1.6 per cent in the previous year.

During the first quarter of 2002-03 (April-June), the central governments fiscal deficit amounted to Rs 39,560 crore, lower by 6.3 per cent as compared to Rs 42,198 crore in the corresponding period last year.

This constituted 29.2 per cent of the budget estimates as compared with 37.9 per cent during the same period last year. The revenue deficit at Rs 34,543 crore during the first quarter this fiscal was higher by 6.5 per cent and constituted 36.2 per cent of the budget estimates.

The revenue receipts during the first quarter this fiscal was higher by 38.1 per cent at Rs 29,864 crore as compared to 9.3 per cent the same period last year. The weekly average utilisation ways and means advances (WMA) exhibited a progressive decline from Rs 10,391 crore in the first quarter to Rs 4,552 crore in the last quarter of 2001-02.

However, the average utilisation was higher at RS 7,138 crore in 2001-02 as compared to Rs 4,881 crore in the previous year. The WMA outstanding at the end of 2001-02 was lower at Rs 5,176 crore as compared with Rs 5,395 crore at the end of the previous fiscal year. In 2002-03, the governments fiscal deficit at Rs 1,35,524 crore is 2.9 per cent higher than that in the revised estimates for 2001.02.

The revenue deficit estimated at Rs 95.377 crore, is higher by four per cent but the primary deficit projected at Rs 18.134 crore is lower by 25.9 per cent than that in 2001-02.