Centre hands out Rs 70,838 crore to state govts

NEW DELHI: The Centre has transferred Rs 70,838 crore, including Rs 40,580 crore of taxes and duties, to state governments in the five months of the current fiscal.

The share is 36% of the Budget estimates, which is as per the Budget estimates, as per the data released by the controller general of accounts on Friday.

Commenting on the figures, finance minister P Chidambaram said devolution in the April-July quarter of ’06-07 has also been higher than the corresponding period of last year.

He said, the government will be able to keep up with the fiscal and revenue deficit reduction targets set for this fiscal, at 3.8% and 2.1% of the GDP, respectively. However, to achieve this he has warned all ministries to keep within the budget.

With the first half of the fiscal ending on Saturday, Mr Chidambaram, in his address said that the term so far has gone well in terms of the fiscal.

The cumulative fiscal deficit has touched 61% of the budget estimates in the April-August period. It is at Rs 90,678 crore.

The revenue deficit has, however, touched 93.7% of the budget estimate at Rs 79,398 crore. But this does not include the second instalment of advance tax receipts payable in September.

The government also expects with higher tax collections in the second half of the fiscal, the revenue deficit will become manageable.

The primary deficit, the net addition to the deficit of the government has ballooned to 446.7% at Rs 39,589 crore, much more than the corresponding period of last year.

The plan expenditure, the productive investment spend of the government has also touched Rs 53,920 crore at 33%, while non-plan expenditure is at Rs 1,46,516 crore or 37.4% of the budget estimate, in the same five months period.