NEW DELHI: The Finance Minister, Prof Madhu Dandavate has Expressed concern over the growing budgetary deficit and revenue Collections running behind budgetary projections.
The federal government’s budgetary deficit had reached 118000 million rupees by the end of the calendar year 1989 as against the budget estimates of 73370 million rupees for the whole of 1989-90 according to official sources.
Of the budgeted revenue collections for 1989-90 only 68 percent were realized up to the end of last year, against more than 70 percent during the corresponding period of the previous year.
The finance minister has instructed officials of the ministry to step up efforts and make up for any slackness that may have developed in revenue collections,
Revenue collections were behind budget projections, particularly in respect of excise and corporate tax, official sources said.
At 11,8000 million rupees, the deficit by the end of 1989 has far exceeded the corresponding figure of 8,6000 million rupees during the period in the previous year.
The present trend is rather disquieting and poses a tough challenge for the new government as only three months are left in the current financial year to correct the situation.
According to present indications, it is likely that the deficit for the entire fiscal year will substantially exceed the budgeted figure of 7,3370 million rupees.
Article extracted from this publication >> January 26, 1990
