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Budget Estimates


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Budget 1998-99
Budget 1997-98
Budget 1996-97

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Budget Estimates for 1999-2000

In the budget estimates for 1999-2000, the total expenditure is estimated at Rs.2,84,003 crore, of which Rs.77,000 crore is for Plan and Rs.2,07,003 crore for non-Plan.

Plan Expenditure

The budget support for Central, State and UT Plans has been placed at Rs.77,000 crore, marking an increase of Rs.8,629 crore over revised estimates 1998-99. Following the direction of the Prime Minister, the Plan for 1999-2000 focuses on basic human development needs such as education, health care, social welfare, housing, and water supply. Thus, out of the total Gross Budgetary Support of Rs.44,000 crore for the Central Plan 1999-2000, Rs.31,035 crore has been provided to 18 Ministries/Departments covered by the Prime Minister’s Special Action Plan. Total Central Plan outlay at Rs.1,03,521 crore will be more by Rs.15,039 crore from the last year’s level of Rs.88,482 crore. Gross budgetary support for the Central Plan is being enhanced from Rs.38,263 crore in the revised estimates 1998-99 to Rs.44,000 crore. 
Compared to revised estimates 1998-1999, outlay for Plan programmes has been significantly increased in certain priority sectors. For example, the increase is 34.5% in the Agriculture and Allied Activities and 21.9% in Social Services.
Central Plan assistance to States and Union Territories in 1999-2000 is placed at Rs.33,000 crore as compared to Rs.30,108 crore in the revised estimates 1998-99. Assistance for Basic Minimum Services and Slum Development Schemes is proposed to be enhanced from Rs.3,684 crore to Rs.4,043 crore.
Last year, I had announced a non-lapsable pool for the North East. I am glad to inform you that we have already released Rs.98 crore for projects in the North East out of the savings from the budget of different Central Ministries.

Non Plan Expenditure

Non-Plan expenditure in 1999-2000 is estimated to be Rs.2,07,003 crore compared to Rs.2,13,541 crore in revised estimates 1998-99. This would have actually been Rs.2,32,003 crore but for a change in the system of accounting of loans to States and UTs against net Small Savings collections with effect from 1.4.99. The changeover, which is in the interest of transparency and viability of the Small Savings schemes, is being made in deference to a suggestion in the Inter State Council in December 1998 on delinking the small savings from Central Government’s fiscal deficit concerns. A Committee set up under the chairmanship of Shri R.V. Gupta has gone into the issue. Based on the Committee’s recommendations and with the concurrence of the Comptroller and Auditor General of India, the transactions will now be under a newly created National Small Savings Fund in the Public Account, which will reflect the Treasury Banking nature of these operations. A copy of the Committee’s report is being placed in the library of the Parliament for Hon’ble Members’ information.
Major items of increase in non-Plan expenditure are Interest payments, Rs.10,752 crore, Defence expenditure, Rs.4,494 crore, and grants to States, Rs.3,621 crore. A provision of Rs.1,735 crore has been made for non-Plan loans to public sector enterprises mainly for payment of salaries and wages to the employees of sick and convalescent PSUs.
Rs.45,694 crore are being provided for Defence expenditure against Rs.41,200 crore in revised estimates 1998-99. Further need based budgetary support will be provided during the course of the year.

Revenue Receipts

Before I proceed to detail my tax proposals, I would like to highlight the position of fiscal deficit in 1999-2000, if the existing rates of taxes and tariffs are continued. Gross tax revenues would then be Rs.1,67,526 crore and the Centre’s net tax revenue would be Rs.1,22,730 crore. Non-tax revenues are estimated to increase from Rs.48,128 crore in revised estimates 1998-99 to Rs.50,475 crore this year. The net revenue receipts for the Centre, including non-tax receipts, would increase from Rs.1,57,664 crore in revised estimates 1998-99 to Rs.1,73,205 crore in 1999-2000. After taking into account receipts of Rs.10,000 crore from disinvestment of equity in public sector enterprises, the fiscal deficit would be Rs.89,713 crore. This is unacceptably high. I shall now come to my proposals to reduce the deficit.

 

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