Date:10/04/2004 URL: http://www.thehindu.com/2004/04/10/stories/2004041003431700.htm

Business

Government projects GDP growth at 8.1 p.c.

By Our Special Correspondent

NEW DELHI, APRIL 9. Riding on the back of a 10.4 per cent growth in the third quarter of 2003-04, the Union Finance Ministry today projected that the full fiscal year would notch a growth rate of 8.1 per cent against 4 per cent recorded in the preceding year.

Releasing the quarterly statement (October-December 2003) on the economy and the budget as mandated under the Fiscal Responsibility and Budget Management Act, the Ministry said that agricultural gross domestic product (GDP), by growing at 16.9 per cent in the third quarter, had contributed to the growth upswing.

However, a broad-based acceleration in growth from the second to the third quarter was also seen in mining and quarrying, electricity, gas and water supply, trade, hotels, transportation and communication and financing, insurance, real estate and business services.

It said the prospects for agriculture sector have brightened on account of the widespread and above normal monsoon rainfall, which would enable the foodgrain production to cross the peak performance of 212 tonnes.

Dwelling on the experience of the cash management system introduced in the budget last year, the quarterly statement said the actual expenditure up to the third quarter did not exceed the projected requirement in respect of nine ministries or departments selected for cash management.

The overall actual expenditure of Rs. 58,045 crores on these nine demands up to December 2003 was 83 per cent of the projected cash requirement of Rs. 69,524 crores.

On overall expenditure, the statement said while total expenditure up to December 2003 was Rs. 3,16,303 crores (72 per cent of the budget estimate-BE), non-debt receipts were Rs. 2,23,868 crores (79 per cent of BE), leaving the fiscal deficit at Rs. 92,434 crores.

to the corresponding figure for the previous year (Rs. 86,269 crores), the fiscal deficit up to December 2003 was higher by Rs. 6,166 crores in absolute terms but lower as a percentage of budget estimates that during the corresponding period of the preceding year.

The revenue deficit up to December 2003 was Rs. 72,999 crores, constituting 65 per cent of the BE whereas the corresponding figure for the previous year was Rs. 68,018 crores at 71 per cent of the BE for 2002-03.

During April-December 2003, the Government contracted fresh debt of Rs. 3,37,491 crores. The money was utilised to fund the deficit of Rs. 92,435 crores on the Consolidated Fund of India, deficit of Rs. 25,741 crores on Public Account of India and Rs. 2,12,114 crores on repayment of past debt. Surplus cash was invested with the

Out of Rs. 3,29,788 crores raised as internal debt up to December 2003, Rs. 1,96,389 crores was utilised to repay past debt and the balance of Rs. 1,33,399 crores was utilised to meet the fresh requirements of the current year. Up to December 2003, total interest payments (on all debts and Public Account accruals) were Rs. 78,587 crores.