Govt.'s revenue position improves

By Alok Mukherjee

NEW DELHI, OCT. 31. There is some good news on the economic front at last. The Central Government's half-yearly fiscal report (April- September 2001) shows that the overall revenue position has increased from the dismal levels it was in during the initial months of the current financial year, though the situation is not better than what it was in the last year.

For instance, the Centre's overall revenue receipts have reached 34.2 per cent of the annual target in the first half. The improvement is visible compared to the April-August 2001 situation, when revenue receipts were just about 24.3 per cent of the target.

There has also been an upswing in the net tax revenues, which have moved up from 19 per cent during April- August to 29.8 per cent during April-September 2001. Non-tax revenues are also up from 36.7 per cent till August to 44.5 per cent of the annual target by the end of September.

The overall fiscal deficit position is also less alarming. It stood at 49.2 per cent of the annual target in the first six months. By August this year, the deficit had reached 48.2 per cent of the target and the incremental expansion in the deficit was probably kept under check because of the improved revenue position by September.

The revenue deficit, on the other hand, has declined marginally. While it stood at Rs. 43,640 crores at the end of August this year (translating into 55.4 per cent of the annual target), it declined slightly to Rs. 43,615 crores by September- end and was 55.3 per cent of the annual target.

There has also been an increase in recovery of loans during September. Against a recovery of Rs. 5,809 crores till August, the recovery position was Rs. 8,572 crores at the end of September, which put the achievement at 56.5 per cent of the annual target. Total receipts, therefore, worked out to 33.9 per cent of the annual target during the first six months, up from 24 per cent at the end of August.

The Centre's Plan and non-Plan expenditure are more or less in line with last year's trends. In the first six months of this year, Plan expenditure has been 39.8 per cent of the target whereas it was 40.5 per cent in the same period last fiscal. Non- Plan expenditure was placed at 38.9 per cent this year against 37.7 per cent last year.

The Government's market borrowings are, however, still higher this year, at 74 per cent of the annual target against 64 per cent achieved during the first six months of the last fiscal.

With the fiscal situation getting into some shape, the Finance Ministry is taking solace in some of the other good indicators that came in recently. The latest report on inflation shows it has fallen to a 18-month low of 3.04 per cent by the week-ended October 13. The rate in the corresponding period of last year was 7.2 per cent. The other good news for the Ministry came in from Mumbai saying that foreign exchange reserves had reached $45.14 billion by October 19. The increase was on the basis of fresh inflow of $9 million during that week.

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