50 per cent rise in govt expenditure

 An excess of over Rs 17,444 crore in the non-plan expenditure has pushed the total expenditure of the Centre to almost 50 per cent of the budget estimates in the first half of 2003-04, as compared to 39.6 per cent in the corresponding period of the previous year.

 The excess is due to a sharp rise in food subsidies, interest and payment to financial institutions.

 The mid-year review of the economy has therefore underlined the need for fiscal consolidation as one of the hindrances towards accelerated growth.

 Giving a detailed break up of the trend in expenditure, the review said non-plan expenses have exceeded that of the last financial year by a level of Rs 50,046 crore in absolute terms.

 This is nearly 13 per cent of the budget estimate for the total expenditure of the current financial year.

 The review said revenue collections in 2003-04 are likely to meet the targets, in spite of a shortfall in central excise duties, which have dropped by 1.7 per cent partly due to a sluggish growth in the petroleum sector.

 But service tax collections have touched Rs 2,895 crore in the period between April and September, which is 50 per cent more than recorded in 2002-03.

 Within the excess non plan expenditure, Rs 32,602 crore has been contributed to funds received through the states