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NEW DELHI, Dec. 31

THE Centre's fiscal deficit rose by 23 per cent during the first eight months of the current fiscal, following a major slump in tax collections coupled with a spurt in expenditure.

According to data released by the Comptroller-General of Accounts (CGA), fiscal deficit during April to November stood at Rs 79,133 crore as compared to Rs 64,269 crore in the same period last year. The deficit amounted to 68 per cent of the budgeted target of Rs 1,16,314 crore for the current fiscal.

The Finance Minister, Mr Yashwant Sinha, has already gone on record to state that there could be a slippage in the budgeted fiscal deficit target of 4.7 per cent of the GDP owing to the decline in customs and income tax collections.

Revenue receipts during the first eight months were virtually stagnant at Rs 1,10,472 crore as compared to Rs 1,09,934 crore in the same period last year.

Net tax revenues dropped by nine per cent to touch Rs 66,521 crore during April to November as compared to Rs 73,250 crore in the same period last year.

This amounted to just 40.8 per cent of the budgeted target of Rs 1,63,031 crore. In contrast, net tax revenues amounted to 47.5 per cent of the budget target of Rs 1,46,209 crore up to November 2000.

A silver lining was the spurt in non-tax revenues on the back of the Rs 9,350 crore dividend paid by the Reserve Bank of India and Rs 820 crore dividend paid by Videsh Sanchar Nigam Ltd. Revenues from this source are set to increase further, following VSNL's recent announcement of a special dividend of 750 per cent. Non-tax revenues up to November stood at Rs 43,951 crore as compared to Rs 36,684 crore in the same period last year, marking an increase of 19.8 per cent.

Total expenditure grew by 10 per cent to touch Rs 2,00,608 crore as against Rs 1,80,812 crore up to November 2000. Of this, non-Plan expenditure rose by 9.6 per cent to touch Rs 1,48,205 crore, while Plan expenditure grew by 15 per cent to touch Rs 52,403 crore.

Non-Plan expenditure up to November amounted to 53.9 per cent of the budgeted expenditure of Rs 2,75,123 crore.

A similar trend was witnessed last year too. Plan expenditure, on the other hand, amounted to 55 per cent of the Budget target of Rs 95,100 crore for the current fiscal.

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