FM elated at revenue buoyancy

New Delhi: Half way into the current financial year, finance minister P Chidambaram thinks he has got his budget sums right.

The FM on Friday was elated that the Centre’s revenues are buoyant and claimed that the measures taken by the UPA government have yielded positive results.

He also announced that non-tax revenues are encouraging and there has been an increase of 11% during the period April to July 2006 (Rs 13,696 crore) compared to the corresponding period of the previous year (Rs12,340 crore).

Chidambaram conceded that “there is some concern about the rising expenditure.” He, however, pointed out that the increase in expenditure is largely attributable to the sharp rise in plan expenditure which, during April to July 2006, grew by 21.6% over the corresponding period of the previous year.

The growth in non-plan expenditure has been 22.0%, he said, adding that most departments had done well in quickening the pace of plan expenditure.

As far as non-plan expenditure is concerned, the increase is attributable to transfers to states, carry forward of VAT compensation claims (Rs1,365 crore), increase in interest payments, increase in subsidies and increase in defence services expenditure.

The finance minister held a meeting on Friday with the financial advisors (FAs) of all ministries to review the budget trends. He said the FAs will be personally responsible and ensure that both their plan and non-plan spending remain within the budget limit.

Chidambaram said he is confident that the government would be able to maintain the fiscal deficit at the budgeted level of 3.8% of the GDP and the revenue deficit at the budgeted level of 2.1% of the GDP.