Indian Fiscal Budget 1997-98: Full Text

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Budget Estimates for 1997-98 & Revenue Recipts Budget Estimates for 1997-98

  1. I now turn to the Budget Estimates for 1997-98.

  2. The total expenditure is estimated at Rs.232,481 crore of which Rs.62,852 crore has been provided as budget support for Central, States and UT Plans and the balance Rs.169,629 crore is for non-Plan expenditure. Hon'ble Members will be pleased to note that the increase in budget support for the Plan will be Rs.7958 crore over RE 1996-97, which is the largest increase ever.

  3. Budgetary support to the Central Plan is being concentrated on rural development, employment and poverty alleviation programmes and in the human resource development sectors. For 1997-98, the outlay for the Ministry of Rural Areas and Employment is being increased to Rs.9096 crore, an increase of Rs.1271 crore over the RE for 1996-97. In 1997-98, Jawahar Rozgar Yojana is estimated to generate about 520 million mandays of employment. About 90,000 habitations will be provided safe drinking water during 1997-98 under the Accelerated Rural Water Supply Scheme.

  4. The outlay for the Social Services sector is being substantially enhanced from Rs.11,785 crore in RE 1996-97 to Rs.15,707 crore in BE 1997-98. Significant increases are under Urban Development (Rs.775 crore), General Education (Rs.1189 crore), Technical Education (Rs.132 crore), Family Welfare (Rs.282 crore) and Water Supply and Sanitation (Rs.312 crore).

  5. The Science and Technology sector is being provided Rs.1870 crore as against Rs.1584 crore in RE 1996-97.

  6. The Maulana Azad Education Foundation is being given Rs.40 crore. The National Minorities Development and Finance Corporation is being provided Rs.41 crore.

  7. Rs.96 crore is being allocated to the National SC and ST Finance and Development Corporation. For the welfare of the handicapped, I am providing Rs.90 crore and for the National Handicapped Finance and Development Corporation I am giving Rs.28 crore.

  8. Total non-Plan expenditure in 1997-98 is estimated to be Rs.169,629 crore. The interest payments are estimated to be Rs.68,000 crore.

  9. Fertiliser subsidy on indigenous fertilisers is being enhanced to Rs.5240 crore in 1997-98 from Rs.4743 crore in RE 1996-97. In addition, subsidy on imported fertilisers is being increased to Rs.1950 crore in 1997-98, as against Rs.1350 crore in RE 1996-97. The subsidy on sale of decontrolled fertilisers is being enhanced to Rs.2000 crore in 1997-98 from Rs.1674 crore in RE 1996-97.

  10. An amount of Rs.7500 crore is being earmarked for foodgrains and sugar subsidies in 1997-98 representing an increase of Rs.1434 crore over RE 1996-97. When the dual card system under the Targeted PDS takes effect throughout the country, if more funds are required, I shall provide the same. I may not wear my heart on my sleeve, but my heart is in the right place.

  11. I would like to make a special mention of the outlay for Defence. Rs.35,620 crore is being provided which includes Rs.3620 crore for implementing the recommendations of the Fifth Pay Commission. In the past, revenue expenditure of the Defence Services had been routinely underprovided. This year, I have requested the Ministry of Defence to fully provide for the revenue expenditure. On the capital account, for the present, I am providing Rs.8907 crore which is Rs.402 crore more than RE 1996-97, with a clear promiseand I make that solemn undertaking here that any additional requirement of Defence for capital expenditure will be adequately provided for during the course of the year. Mr Speaker, Sir, my head is also in the right place.

  12. A provision of Rs.4205 crore is being made for implementing the recommendations of the Fifth Pay Commission for employees other than Defence and Railway personnel for whom separate provisions have been made in this Budget and in the Railway Budget. The recommendations of the Pay Commission are being processed expeditiously according to established procedure.

  13. The non-Plan provision for assistance to the public sector units has been on the increase. In 1996-97, we approved revival packages for Bharat Yantra Nigam, Bharat Bhari Udyog Nigam, Hindustan Paper Corporation, Scooters India, HEC and Bharat Refractories. For 1997-98, I am providing Rs.1107 crore as non-Plan loans, and I expect that we will approve more restructuring proposals during the course of next year.

    Revenue Receipts

  14. I now turn to the revenue receipts.

  15. Gross tax revenues at the existing rates of taxation are estimated at Rs.153,347 crore. After providing Rs.40,254 crore as the States' share of taxes, the Centre's net tax revenue will be Rs.113,094 crore. Non-tax revenues have also shown healthy buoyancy. The receipts under the head are expected to be Rs.39,749 crore in 1997-98. I have taken credit for Rs.3681 crore as license fee from private operators of cellular and basic telecom services.

  16. The net revenue receipts for the Centre, including non-tax receipts, are expected to increase from Rs.130,783 crore in RE 1996-97 to Rs.152,843 crore in 1997-98.

  17. In the area of capital receipts, market borrowings are placed at Rs.34,425 crore. Net external assistance will be Rs.2435 crore. I am also taking credit for receipts from disinvestment of equity in public sector enterprises of Rs.4800 crore. Total receipts at the existing rates of taxation are estimated at Rs.231,876 crore.

  18. I shall come to the gross fiscal deficit in Part B of my speech.

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