Despite good performance on the revenue front, the fiscal deficit has moved up mainly because of higher expenditure on the Plan and Non-Plan side.

According to figures compiled for April-May 2000-2001 by the Controller General of Accounts (CGA), total expenditure of the Union government during the first two months of the current financial year was Rs 39,341 crore up from Rs 34,267 crore during the corresponding period last year.

The increase, however, has been more marked on the Plan side. The Plan expenditure during April-May 2000 was 11,896 crore as opposed to only Rs 7,961 crore during the corresponding period last year. The increase works out to be nearly 50 per cent.

The growth on the Non-Plan side has remained subdued reflecting the commitment of the government to contain unproductive expenditure. The Non-Plan expenditure during the first two months of the current fiscal was Rs 27,445 crore, marginally up from Rs 26,306 crore recorded at the end of May 1999.

As far as revenue was concerned, receipts totalled Rs 15,303 crore at the end of May 2000, up from Rs 11,661 crore in the corresponding period last year. The revenue collections during the first two months went up by more than 31 per cent signalling industrial recovery. Part of the increase is also on account of the fact the last year there were lot of refunds and net revenue realisation during April 1999 was negative (-Rs 307 crore).

Total receipts were Rs 15,820 crore during April-May 2000 as compared to Rs 12,256 crore in the corresponding period last year.

On account of higher expenditure, the fiscal deficit during the first two months went up to Rs 23,521 crore from Rs 22,011 crore at the end of May 1999.

The revenue deficit too moved up to Rs 18,375 crore from Rs 17,498 crore at the end of first two months during the last financial year. The primary deficit at the end of May 2000 was Rs 9,260 crore, down from Rs 9,946 crore during the corresponding period last year. The government plans to close the current financial year with a revenue deficit of Rs 10,009 crore. During the last financial year, the Union has run a fiscal deficit of Rs 17,473 crore.