Home > Business > Business Headline > Report
State finances deteriorated in 2001-02
BS Banking Bureau in Mumbai |
February 24, 2003 13:02 IST
Finances of state governments have shown a deterioration in 2001-02 as against an improvement in the preceding fiscal.
Gross fiscal deficit in 2001-02 increased by 19.1 per cent to Rs 1,06,595 crore (representing 4.6 per cent of the GDP) over the previous year.
The revenue deficit, that stood at Rs 60,540 crore (Rs 605.4 billion), was higher by 13 per cent over the previous year. Primary deficit also increased 11.3 per cent in 2001-02 over the preceding fiscal.
Revenue receipts rose to Rs 2,70,901 crore (Rs 2,709.01 billion) -- a 13.8 per cent increase over the previous year. While states' own revenue receipts -- by way of tax and non-tax receipts -- increased by 10.3 per cent, current transfers from the centre comprising states' share in central taxes and grants were higher by 19.8 per cent in 2001-02 over the previous year.
In contrast, aggregate expenditure of states was higher by 15.7 per cent at Rs 4,01,571 crore (Rs 4,015.7 billion) during 2001-02. Against a 26 per cent rise in capital expenditure in 2001-02, the increase in revenue expenditure was less at 13.7 per cent.
The revenue expenditure accounted for 73 per cent of the increase in total expenditure, while the balance was accounted for by the capital expenditure.
Interest payments, pension outgo and expenditure towards administrative services accounted for 45 per cent of the total increase in revenue expenditure.
Under capital expenditure, capital outlay showed an increase of Rs 7,204 crore (Rs 71.04 billion) and accounted for 50 per cent of the increase in total capital expenditure. Loans and advances extended by the states were higher by Rs 3,840 crore (Rs 38.4 billion) in 2001-02 over the previous year.
State governments expenditure relating to natural calamity was significantly higher by 45.6 per cent in 2001-02 as compared to the previous year.
Non-developmental expenditure also rose by 20.8 per cent largely on the back of a 24.8 per cent increase in interest payments.
Powered by