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Fiscal deficit up 25 pc

Our Bureau

NEW DELHI, Nov. 29

FOLLOWING a steep fall in tax revenues and a spurt in non-Plan expenditure, the Centre's fiscal deficit during April to October this year has risen by 25 per cent. In absolute terms, the deficit stood at Rs 63,383 crore as compared to Rs 50,899 crore in the corresponding period last year.

The Finance Minister, Mr Yashwant Sinha, however, held that his concern centred around ``investment expenditure rather than various points of the deficit'' in a year, marked by industrial slowdown.

The fiscal deficit amounts to 54.5 per cent of the budgeted deficit of Rs 1,16,314 crore for 2001-02.

During the period under review, net tax revenues declined sharply by 9.9 per cent to touch Rs 58,653 crore as compared to Rs 65,098 crore. The fall in tax revenues has been mainly on account of decline in indirect tax collections and a fall in corporate tax collections owing to hefty refunds.

The revenue shortfall has given rise to concerns about the Government borrowings shooting up above the budgeted level of Rs 1,18,852 crore. Mr Sinha, however, declined to commit on whether the Budget target on borrowings would be overshot.

A redeeming feature, however, has been the 24 per cent growth in non-tax revenues in view of a higher than budgeted dividend payout by the Reserve Bank of India. With licence fees due from telecom operators and State-owned telecom companies, the Finance Ministry expects to mop up higher amounts under this head.

On the expenditure front, non-Plan expenditure rose by close to 12 per cent to touch Rs 1,26,626 crore as compared to Rs 1,13,116 crore during April to October last year. Plan spending too has witnessed a 9.4 per cent increase to touch Rs 45,774 crore. T he Finance Ministry is not averse to a higher Plan spending at the cost of a higher fiscal deficit.

Recovery of loans has gone up to Rs 9,764 crore during April to October as compared to Rs 5,405 crore in the same period last year.