Net domestic savings of the corporate sector dropped by a dramatic 17.8 per cent in 1996-97 after a huge rise of 58 per cent in 1995-96 and a relatively smaller rise of 5.4 per cent in 1994-95. Net capital formation by the sector was Rs 31,084 crore in 1993-94, Rs 47315 crore in 1994-95, Rs 75,603 crore in 1995-96 and Rs 72,762 crore in 1996-97. The public sector did better. Net capital formation grew by 0.5 per cent in 1996-97 after falling 9.5 per cent in 1995-96.
It was Rs 44,800 crore in 1994-95 crore, Rs 40,553 crore in 1995-96 and Rs 40,738 in 1996-97. The largest contributor to net capital formation was the household sector that leaped from Rs 26,827 crore in 1993-94 to Rs 53,925 crore in 1994-95, Rs 77,238 crore in 1995-96 and Rs 81,166 crore.
The net capital formation of all sectors was Rs 210,303 crore in 1996-97 against Rs 192,197 crore in 1995-96, an increase of 15 per cent.
At current prices, net domestic savings of the corporate sector was Rs 5,394 crore in 1992-93, Rs 12,711 crore in 1993-94, Rs 13,388 crore in 1993-94, Rs 21,193 crore in 1995-96 and Rs 17,573 crore in 1996-97.
The extent of dis-saving by the public sector went up by 26 per cent in 1996-97 from Rs 22,729 crore in 1995-96 to Rs 28749 crore in 1996-97, Statistical Abstract India 1997 of the CSO says.
The domestic household sector registered a sharp growth in net domestic savings, clocking a rise of 26 per cent to reach Rs 217,810 crore in 1996-97 from Rs 172,953 crore in 1995-96 and Rs 162,818 crore in 1994-95.
The household sector includes investments like shares and debentures, net claims on government, life insurance, provident and pension funds besides currency in circulation and savings in physical assets.
Corporate sector savings includes those of joint stock companies, non-financial and financial organisations, cooperative banks and societies.
Public sector dis-savings are generated by public authorities, government administration, departmental commercial enterprises, non-departmental enterprises, government companies and statutory corporations, including port trusts. Negative saving by government administration rose from Rs 22,774 crore in 1995-96 to Rs 27,498 crore in 1996-97. In the case of public authorities, it rose from Rs 12,252 crore in 1995-96 to Rs 16569 crore in 1996-97.
