The Hindu : Karnataka / Bangalore News : Plan expenditure may fall short by Rs. 1,187 cr.

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Wednesday, Mar 10, 2010
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Karnataka

Karnataka - Bangalore

Plan expenditure may fall short by Rs. 1,187 cr.

Special Correspondent

BANGALORE: The State Government is expected to fall short of its budgeted plan expenditure commitments by Rs. 1,187 crore in the current year, according to revised estimates.

In the mid-term fiscal plan for 2010-14 tabled in the Legislative Assembly, the Government has admitted that it has been continuously recording a revenue surplus since 2004-05 and the gross fiscal deficit has been contained within three per cent.

But, this could not be contained during 2008-09 and 2009-10, for which fiscal responsibility legislation was amended to permit itself to incur fiscal deficit of up to 3.5 per cent and four per cent of the estimated GSDP, respectively.

About the trend in major own tax revenues, the mid-term fiscal plan said that the tax effort has been showing a continuous declining trend after reaching a peak of 11.3 per cent in 2006-07. Despite the economic slowdown, the Government has managed to increase its revenues by over six per cent in 2008-09 and 2009-10.

The mid-term fiscal plan 2009-13 had anticipated revenues of Rs. 1,900 crore from the sale of government land. However, due to the slowdown in the real estate market, which resulted in a correction in property prices, sale of government land to raise additional resources was not considered in the current year. It is expected that in 2009-10 not more than Rs. 100 crore would be realised, and there would be a shortfall of Rs. 1,800 crore.

It is expected that there will be better realisation from sale of land next year.

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