Budget 1997-98: Full Text
Budget Estimates for 1997-98 & Revenue Recipts Budget Estimates for 1997-98
- I now turn to the Budget Estimates for 1997-98.
- The total expenditure is estimated at Rs.232,481 crore
of which Rs.62,852 crore has been provided as budget
support for Central, States and UT Plans and the balance
Rs.169,629 crore is for non-Plan expenditure. Hon'ble
Members will be pleased to note that the increase in
budget support for the Plan will be Rs.7958 crore over RE
1996-97, which is the largest increase ever.
- Budgetary support to the Central Plan is being
concentrated on rural development, employment and poverty
alleviation programmes and in the human resource
development sectors. For 1997-98, the outlay for the
Ministry of Rural Areas and Employment is being increased
to Rs.9096 crore, an increase of Rs.1271 crore over the
RE for 1996-97. In 1997-98, Jawahar Rozgar Yojana is
estimated to generate about 520 million mandays of
employment. About 90,000 habitations will be provided
safe drinking water during 1997-98 under the Accelerated
Rural Water Supply Scheme.
- The outlay for the Social Services sector is being
substantially enhanced from Rs.11,785 crore in RE 1996-97
to Rs.15,707 crore in BE 1997-98. Significant increases
are under Urban Development (Rs.775 crore), General
Education (Rs.1189 crore), Technical Education (Rs.132
crore), Family Welfare (Rs.282 crore) and Water Supply
and Sanitation (Rs.312 crore).
- The Science and Technology sector is being provided
Rs.1870 crore as against Rs.1584 crore in RE 1996-97.
- The Maulana Azad Education Foundation is being given
Rs.40 crore. The National Minorities Development and
Finance Corporation is being provided Rs.41 crore.
- Rs.96 crore is being allocated to the National SC and ST
Finance and Development Corporation. For the welfare of
the handicapped, I am providing Rs.90 crore and for the
National Handicapped Finance and Development Corporation
I am giving Rs.28 crore.
- Total non-Plan expenditure in 1997-98 is estimated to be
Rs.169,629 crore. The interest payments are estimated to
be Rs.68,000 crore.
- Fertiliser subsidy on indigenous fertilisers is being
enhanced to Rs.5240 crore in 1997-98 from Rs.4743 crore
in RE 1996-97. In addition, subsidy on imported
fertilisers is being increased to Rs.1950 crore in
1997-98, as against Rs.1350 crore in RE 1996-97. The
subsidy on sale of decontrolled fertilisers is being
enhanced to Rs.2000 crore in 1997-98 from Rs.1674 crore
in RE 1996-97.
- An amount of Rs.7500 crore is being earmarked for
foodgrains and sugar subsidies in 1997-98 representing an
increase of Rs.1434 crore over RE 1996-97. When the dual
card system under the Targeted PDS takes effect
throughout the country, if more funds are required, I
shall provide the same. I may not wear my heart on my
sleeve, but my heart is in the right place.
- I would like to make a special mention of the outlay for
Defence. Rs.35,620 crore is being provided which includes
Rs.3620 crore for implementing the recommendations of the
Fifth Pay Commission. In the past, revenue expenditure of
the Defence Services had been routinely underprovided.
This year, I have requested the Ministry of Defence to
fully provide for the revenue expenditure. On the capital
account, for the present, I am providing Rs.8907 crore
which is Rs.402 crore more than RE 1996-97, with a clear
promiseand I make that solemn undertaking here that any
additional requirement of Defence for capital expenditure
will be adequately provided for during the course of the
year. Mr Speaker, Sir, my head is also in the right
- A provision of Rs.4205 crore is being made for
implementing the recommendations of the Fifth Pay
Commission for employees other than Defence and Railway
personnel for whom separate provisions have been made in
this Budget and in the Railway Budget. The
recommendations of the Pay Commission are being processed
expeditiously according to established procedure.
- The non-Plan provision for assistance to the public
sector units has been on the increase. In 1996-97, we
approved revival packages for Bharat Yantra Nigam, Bharat
Bhari Udyog Nigam, Hindustan Paper Corporation, Scooters
India, HEC and Bharat Refractories. For 1997-98, I am
providing Rs.1107 crore as non-Plan loans, and I expect
that we will approve more restructuring proposals during
the course of next year.
- I now turn to the revenue receipts.
- Gross tax revenues at the existing rates of taxation are
estimated at Rs.153,347 crore. After providing Rs.40,254
crore as the States' share of taxes, the Centre's net tax
revenue will be Rs.113,094 crore. Non-tax revenues have
also shown healthy buoyancy. The receipts under the head
are expected to be Rs.39,749 crore in 1997-98. I have
taken credit for Rs.3681 crore as license fee from
private operators of cellular and basic telecom services.
- The net revenue receipts for the Centre, including
non-tax receipts, are expected to increase from
Rs.130,783 crore in RE 1996-97 to Rs.152,843 crore in
- In the area of capital receipts, market borrowings are
placed at Rs.34,425 crore. Net external assistance will
be Rs.2435 crore. I am also taking credit for receipts
from disinvestment of equity in public sector enterprises
of Rs.4800 crore. Total receipts at the existing rates of
taxation are estimated at Rs.231,876 crore.
- I shall come to the gross fiscal deficit in Part B of my
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