| This is reflected in the sharp 258 per cent increase in recoveries of loans to Rs 64,625 crore in the revised estimates for the current fiscal against the budgeted Rs 18,023 crore. |
| Under the debt swap plan conceived by the finance ministry, states earmark 20 per cent of their small savings towards prepayment of high-cost Central loans. |
| The unabated rise in small savings collections during the year has encouraged the Centre to scale up its realisation to Rs 70,900 crore, 16 per cent more than what it had budgeted for the year. |
| States are expected to earmark 20 per cent or Rs 14, 180 crore of their total small savings receipts towards the debt swap. |
| Together with additional market borrowings facilitated by the Reserve Bank of India, states have pre-paid about Rs 36,600 crore of high-cost central loans till now. |
| In the remaining two months, they are expected to prepay another Rs 10,000 crore. The Centre, on its part, has repaid its liabilities to the National Small Savings Fund through these recoveries, which figure as capital spend in the revised estimates for non-Plan expenditure for the current fiscal. |
| And the NSSF, in turn, has invested the surplus cash of Rs 60,400 crore (Rs 46,602 crore this year and Rs 13,800 crore last fiscal) in government securities. |
| Finance ministry officials said this was one of the reasons for the lower market borrowings in the current fiscal. |
| The budgeted market borrowings of Rs 1,07,194 crore have been revised downwards by 22 per cent to Rs 82,982 crore. |
| The revised estimates for net resources transfer to states and Union territories during the fiscal were lowered because the Rs 46,600 crore received by the Centre from states under the debt swap plan has been excluded, the officials said. The resource transfer to states was Rs 1,26,623 crore in the budget estimate for the fiscal. |
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