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| Fiscal deficit to be Rs 150,948 crore: Chidambaram | | Total plan expenditure to be Rs 205,100 crores | | BL KAK
NEW DELHI, FEB 28
Anxiously-awaited official document, better known as Union Budget, for the year 2007-08 is out, with the Finance Minister, P Chidambaram, presenting the UPA government's mid-term report card on the economy in Parliament on Wednesday. The Finance Minister said that the plan expenditure for next financial year commencing April 1 is estimated at Rs 205,100 crore, which is 32 per cent of total expenditure.
Non-plan expenditure for 2007-2008 is estimated at 435,421 crore rupees, an increase of 6.5 per cent over the current fiscal. Chidambaram, who took at least 100 minutes to complete his speech in the Lok Sabha, said that in the Budget Estimates for 2007-08, the total expenditure is estimated at Rs.680,521 crore (including Rs.40,000 crore for the SBI share acquisition). The total revenue receipts of the Central government are projected to be Rs.486,422 crore and the revenue expenditure to be Rs.557,900 crore. Consequently, the revenue deficit is estimated at Rs.71,478 crore which is 1.5 per cent of the GDP. The fiscal deficit is estimated at Rs.150,948 crore, which is 3.3 per cent of the GDP.
Chidambaram said that according to advance estimates, GDP is likely to grow at 9.2 per cent in the current fiscal. He said thanks to the impressive economic performance, the growth's target for the tenth plan, of 8 per cent, will be nearly achieved. Reiterating the government's commitment to economic reforms, fiscal prudence, and monetary stability, Chidambaram said that the manufacturing and service sectors had recorded impressive growth. He, however, admitted that agriculture sector" is growing below the desired level of 4 per cent a year". Hence agriculture must hold the "first charge on our resources", he said.
The 'Bharat Nirman' programme remains the cornerstone of the government's policy. Chidamabaram proposed an increase of 31.6 per cent, to Rs 24,603 crore in allocation for the programme in 2007-2008. Giving primacy to school education in allocating resources, Chidambaram proposed a hike of over 34 per cent for school education. Out of this 'Surve Siksha Abhyaan' will be provided Rs 10,671 crore. He proposed increasing the provisions for 'Teachers Training Institutions'.
He also proposed to appoint two lakh teachers and construct five lakh additional classrooms. Apart from children in primary classes, students in upper primary classes in 3,427 educationally backward blocks will also be covered under the 'Mid-day Meal Scheme.' The provision for secondary education is also proposed to be doubled. A 'National Means cum Merit Scholarship Scheme' will be introduced to arrest the drop-out ratio and encourage students to continue their education beyond class-VIII.
More ambitious targets have been set for drinking water and sanitation, and the allocation for 'Rajiv Gandhi Drinking Water Mission' has been enhanced to Rs 5,850 crore. The allocation for the 'National Rural Health Mission', which is in the second year of its implementation, has been increased to Rs 9,947 crore. Government has brought HIV/AIDS out of the closet, and promised bold and determined efforts to achieve zero-level growth of the disease. More hospitals will provide treatment to prevent transmission of HIV/AIDs from mother to child. Support will be given to protocol and paediatric dosage developed by Indian doctors. He proposed to step up the provision for the AIDS control programme to Rs 969 crore. Rs 1,290 crore will be provided for eliminating polio.
An initial allocation of Rs 12,000 crore has been made for the 'National Rural Employment Guarantee Scheme' (NREGS) which will be expanded to 330 districts. Rs 2,800 crores have been provided for Rural Employment in the districts not covered by the NREGS. A Plan Scheme to be implemented for evaluation, monitoring, management, and strengthening of the targeted Public Distribution System.
In respect of schemes benefiting only SCs and STs, the allocation has been increased to Rs 3,271 crores. A further sum of Rs 63 crore will be provided to the share capital of the National Minorities Development and Finance Corporation. A provision of Rs 108 crores has been made for multi-sector development programme in districts with a concentration of minorities. Taking gender sensitivities of budgetary allocations into account, the outlay for one hundred per cent women specific programmes is Rs 8,795 crore for 2007-08, and for schemes where at least 30 per cent is for women specific programmes is Rs 22,382 crore.
Moving on to agriculture, the Finance Minister presented a number of proposals before the House. He fixed a target of Rs 225,000 crores as farm credit and an addition of 50 lakh new farmers to the Banking System. He made a provision of Rs 1,677 crores for two per cent interest subvention scheme for short-term crops loan. Expressing concern over the stagnation in the production and productivity of pulses, the Finance Minister proposed to expand the integrated Oil-Seeds, Oil Palm, Pulses and Maize Development Programme. The outlay for Accelerated Irrigation Benefit Programme will be increased to Rs 11,000 crore. Chidambaram intends to provide an interest-free loan of three crore rupees to each institution to create a Corps Fund for training trainers and farmers.
He made a provision ofRs 500 crore for continuation of 'National Agriculture Insurance Scheme' in its present form for Kharif and Rabi. The 'National Bank for Agriculture and Rural Development' (NABARD), will be allowed to issue Rural Bonds to the extent of Rs 5,000 crore in order to augment its resources. Recalling the UPA's commitment in the National Common Minimum Programme to introduce a Social Security Scheme for Unorganized Workers, the Finance Minister intended to place Rs 1,000 crore in a fund, to be maintained by the LIC, for a new scheme called "AAM ADAMI BEEMA YOJANA' for the rural landless households.
Chidambaram said that all indicators point to an accelerating rate of investment in the economy. He announced that seven more 'Ultra Mega Power Projects' are under process. Other initiatives in the power sector include, facilitating setting up of Merchant Power Plants by private developers and private participation in transmission projects. The allocation for 'Rajiv Gandhi Grameen Vidyutikaran Yojana' has been increased to Rs 3,983 crore. The provision for National Highway Development Programme has also been hiked to Rs 10,667 crore. |
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