GULBARGA: In the past 15 years, expenditure under the non-development head showed a steady increase eating into the resources allocated for development expenditure.

The trend in development and non-development expenditure in the State presents a disturbing picture of the steep increase in non-development expenditure from a mere 29.04 per cent of the aggregate expenditure during 1990-91 to 45.28 per cent in the budget estimates of 2004-05.

Redeeming feature

One of the redeeming features was the non-development expenditure in the budget estimates of 2004-05 showed a marginal decline of 0.67 per cent compared to the figures of the previous year.

During 2003-04, the non-development expenditure in the State was 45.95 per cent and it came down to 45.28 per cent during 2004-05.

Official sources told The Hindu on Sunday that during 2003-04, the non-development expenditure witnessed a steep increase from 39.30 per cent in the previous year to 45.95 per cent.

Similarly, the development expenditure, which hovered around 70 per cent of the aggregate expenditure of the State, was on the decline from 1997-98 and it came down to 54.05 per cent during 2003-04 and slightly recovered to 54.72 per cent during 2004-05.

Lion's share

While under the development expenditure, economic services comprising agriculture, rural development, irrigation and power, industry and minerals, and transport continue to get the lion's share, social services such as education, medical and public health, water supply and sanitation, social security, welfare of the Scheduled Castes and Scheduled Tribes, and housing continue to play second fiddle.

During 2002-03, economic services got an allocation of Rs. 7699.65 crores and social services got Rs. 6851.58 crores.

During 2003-04, economic services were allocated Rs. 8801.75 crores and the allocation for social services was Rs. 7705.18 crores.

During 2004-05, the allocation for economic services under the development expenditure was Rs. 8732.22 crores and for social services, it was Rs. 8554.40 crores.

The sources said that under the non-development expenditure, the revenue expenditure, fiscal services, interest payment and servicing of debts, administrative services, pension and miscellaneous general services got the lion's share, followed by compensation to local bodies and panchayat raj institutions and capital expenditure.

During 2002-03, the revenue expenditure under general services got an allocation of Rs. 7112.12 crores, for compensation to local bodies and panchayat raj institutions Rs. 573.71 crores was allocated, and the allocation for capital expenditure was Rs. 1736.10 crores.

Similarly, during 2003-04, the revenue expenditure was Rs. 9946.03 crores, followed by Rs. 754.99 crores under the compensation head to local bodies and panchayat raj institutions, and Rs. 3333.20 crores under capital expenditure.

In the 2004-05 budget estimates, Rs. 11475.96 crores was allocated for revenue expenditure, Rs. 798.50 crores for compensation to local bodies and panchayat raj institutions, and Rs. 2030.60 crores for capital expenditure.

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