NEW DELHI: Union budget presented in the lower hose of Parliament (Lok Sabh) showed the revised deficit for 1991-91 as Rs 70320 million against the estimate of Rs 77190 million

This fiscal deficit has been reduced from about 8.4 per cent of GDP in 1990-91 to around 6.5 per cent of GDP in 1991-92.

The figure for 1991-92 is Rs 377920million against Rs.37,7270 million estimated in the budget.

The defence services have been provided Rs 175000 million and increase of seven per cent over the current year’s provision of Rs 163500 million.

“The Central plan outlay for 199293 has been fixed at Rs 484070 million with central assistance for states going up.

The food subsidy pegged at Rs 25000 million while fertilizer subsidy has been put at Rs 50000 million for 1192-93.

The total receipts estimated are Rs 1060 700 million which is higher than the budget estimates of Rs 1057030 million.

The finance minister also proposed a new System of partial Conversion of the rupee to boost export and import substitution. The new system will replace the exam scripts and reduce inefficient bureaucratic control and illegal transactions in foreign exchange.

On the revenue side a large shortfall of Rs 3760 billion in customs revenue owing to severe import compression during most of year but partially offset by higher tax realization from excise duties and income tax.

Shortfall in gross tax revenue is Rs 1869 billion the finance minister said.

An ad hoc increase in pension for defence Personnel from January one this year has been proposed.

The overall budget deficit was placed at Rs 48.72 billion at the existing rates of taxation

Total receipts were placed at Rs 1142.15 billion and total expenditure at Rs 1190.87 billion.

Central assistance for the plans (of states and centrally ruled union territories was stepped up from Rs 147.10 billion in the budget estimates of 1991-92 to Rs 161.11 billion in 1992-93.

There is also an increase of Rs 22.37 billion in the state’s share of taxes at the existing levels of taxation.

Indians and non-resident Indians are permitted to import five kg of gold per person with a modest import duty provided the gold as well as duty is financed from foreign exchange earned abroad.

Article extracted from this publication >> March 13, 1992