Plan expenditure rises 58% in Q1

NEW DELHI: The sharp increase in social sector spending by the central government, has pushed up its Plan expenditure by over 58%, year on year, in the first quarter of ’06-07.

The massive jump from Rs 24,254 crore to Rs 38,524 crore has, therefore, expanded the primary deficit of the government to over 71.3% over that of last year. Primary deficit measures the net addition to government’s borrowing, excluding the cost of interest payments on its loans.

The fiscal deficit of the Centre, measuring the aggregate difference between its income and expenditure has, therefore, risen by 42.10% over that of last year to touch Rs 77,740 crore against Rs 54,517 crore in the April-June quarter of ’05-06.

The figures released by the controller general of accounts on Monday also shows revenue deficit has increased by almost 50% over that of ’05-06.