New Delhi, Oct 31: The government's decision to utilise the proceeds of the states' debt swap scheme to repay its own debt to the National Small Savings Fund (NSSF) has translated into a higher fiscal deficit after a span of five months. The country's fiscal deficit rose by 40% up to the end of September ’03 to top Rs 81,014 crore compared to Rs 57,746 crore during the corresponding period last year. Revenue deficit also stood 37% higher at Rs 65,427 crore compared to Rs 57,746 crore upto the end of September last year. The fiscal deficit amounted to 52.7% of the budget estimate of Rs 1,53,637 crore, according to data released by the Controller of Accounts here today. In comparison, fiscal deficit upto the end of September ’02 amounted to 42.6% of the budgeted figure.

The proceeds realised from the debt swap scheme were shown as non debt capital receipts upto August this year. Since there was no matching entry on the expenditure side, the fiscal showed a better picture despite lacklustre performance on the revenue mobilisation front. However, in September, the government decided to use the proceeds to extinguish its own debt to the NSSF. So alongside the capital receipts entry of repayment by states, a matching entry has been made under the non-plan expenditure on the capital account.
The government realised Rs 40,991 crore as proceeds under the debt swap scheme till the end of September. The repayment of the dues to NSSF by the government is reflected in the matching entry of Rs 40,664 crore on the non-plan expenditure side. The performance on the revenue front has improved in September. Net tax revenues upto the end of September grew by 5.3% to touch Rs 65,057 crore compared to Rs 61,762 crore in the corresponding period last year. Bureau Report