Indian Budget 2004-05
Full Text of P. Chidambaram, Minister of Finance, Budget Speech(July 8, 2004)
X. OTHER PROPOSALS
Budget Estimates for 2004-2005
87. Now, I turn to the budget estimates for the current year.
88. While preparing the Budget, I found that there is a plethora of Plan schemes. The number, the variety and even the acronyms under which these schemes are known are mind-boggling. I also found that there are many schemes with more or less the same objectives. In some cases, all the schemes were located in one ministry or department; in other cases, they were distributed among different ministries or departments. Plan schemes can be broadly divided into three categories – Central Sector, State Sector and Centrally Sponsored Schemes. The NCMP requires that all Centrally Sponsored Schemes, except national priority areas like family planning, shall be transferred to the States. Fortunately, a new Planning Commission is in place, and I am confident that the Planning Commission will bring some order into the tangled web of schemes.
89. Plan expenditure for 2004-05 is estimated at Rs.145,590 crore as against Rs.122,149 crore in the provisional actuals for 2003-04. While there is an increase in plan revenue expenditure from Rs.78,537 crore in 2003-04 to Rs.91,843 crore, there is an even sharper and welcome increase in plan capital expenditure from Rs.43,612 crore in 2003-04 to Rs.53,747 crore.
90. Non-plan expenditure in 2004-05 is estimated to be Rs.332,239 crore, lower than Rs.349,787 crore in the provisional actuals for 2003-04 which includes capital expenditure of Rs.46,211 crore on repayment to the National Small Savings Fund. The increase in non-plan expenditure from the interim Budget is mainly on account of capital expenditure in defence (Rs.11,000 crore), and assistance to Indian Telephone Industries Ltd.
Revenue Deficit and Fiscal Deficit
91. Mr. Speaker, Sir, in the Budget Estimates for 2004-05, the total expenditure is estimated at Rs.477,829 crore, of which Rs.145,590 crore is for Plan and Rs.332,239 crore for non-Plan. I estimate total revenue receipts of the Central Government at Rs.309,322 crore and the revenue expenditure at Rs.385,493 crore. Consequently, the revenue deficit is estimated at Rs.76,171 crore equivalent to 2.5 per cent of GDP, which is one percentage point below the corresponding estimate of 3.5 per cent of GDP in 2003-04 (according to the provisional actuals). The fiscal deficit is estimated at Rs.137,407 crore, which is 4.4 per cent of the estimated GDP.
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