Fiscal deficit at the end of August continued burgeoning, rising by over 26 per cent to Rs 48,126 crore against Rs 38,149 crore in the same period in 1998-99.
And, continuing with the trend established earlier in the year, small savings receipts was up by 20 per cent at the level of Rs 11,136 crore in the period April-August. This is despite the cut in interest rates on small savings schemes and the big bull run in the local bourses.
The government had pegged the fiscal deficit, excluding the small savings component, for 1999-2000 at Rs 79,955 crore. This was only 7 per cent higher than the Rs 74,737 crore (after excluding small savings) reported in the revised estimates for 1998-99.
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The slippage has been caused by continued sluggishness of revenue receipts to the exchequer, which failed to contain the spurt in expenditure witnessed right through the current fiscal year.
The Centre's total expenditure in the first five months of 1999-2000 shot up nearly 17 per cent to Rs 101,754 crore. Net revenue receipts rose by about 9 per cent to Rs 50,611 crore.
This picture, however, does not come out clearly from a first glance at the monthly data put out by the finance ministry. This is because the expenditure levels reported in 1999-2000 are net of small savings payments to the state governments. This change in accounting was effected only in the 1999-2000 Budget, and hence any comparison with 1998-99 would have to be adjusted for the small savings accruals. And then, the comfortable outlook changes radically.
For instance, the expenditure pattern in 1999-2000, does not account for the small savings payments to states under the head of non-Plan expenditure.
Without accounting for small savings, total expenditure in April-August works out to Rs 101,754 crore against Rs 96,265 crore - an increase of only 5.7 per cent. However, the actual rate of increase works out to 17 per cent after correcting last year's expenditure of Rs 9,224 crore in the same period.
Finance ministry officials admitted that any comparison with 1998-99 would require making adjustments for small savings. The higher expenditure this year resulted from enhanced transfers to Union territories and states by way of advance Plan assistance in lieu of the memorandums of understanding.