MUMBAI, Dec 25: The consolidated fiscal deficit of the state governments is set to register a quantum jump to Rs 45,529.6 crore in 1997-98, up from Rs 41,844.6 crore in 1996-97. Five state governments taken together account for about 55 per cent of the consolidated gross fiscal deficit, the Reserve Bank of India's Report on Currency and Finance 1996-97 said.

Maharashtra, Uttar Pradesh, Haryana and Punjab are set to show a steep increase in the non-development expenditure in the current fiscal. Maharashtra is estimated to show the maximum increase in this segment at 44.4 per cent, followed by Haryana (42.2 per cent), Uttar Pradesh (40.1 per cent) and Punjab (17.9 per cent).

Delhi is the only state which is expected to show a decline in its non-developmental expenditure in 1997-98 over the previous year (-14.8 per cent).

The aggregate revenue from state taxes is estimated to be higher at Rs 84,681 crore in 1997-98, showing an increase of 17 per cent over the previous year with sales tax contributing to almost 60.8 per cent of the rise. State taxes are estimated to meet 44.2 per cent of the total revenue expenditure in 1997-98, compared with 41.8 per cent in the previous year.

Some states which are expected to record a sharp growth in their tax revenues over the previous year include Bihar, Kerala, Jammu & Kashmir, Uttar Pradesh, West Bengal and Delhi. Nagaland is, however, expected to witness a marginal decline of 2.7 per cent in its own tax collections during the current fiscal.

The consolidated budgetary operations of the state governments in 1997-98 reveal that while the revenue deficit at Rs 15,373 crore is placed marginally below the revised estimates for 1996-97, the gross fiscal deficit would rise by 8.8 per cent to Rs 45,530 crore.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.