Bengal Leads In Small Savings
West Bengal has surpassed all other states in small savings, both in gross and net terms. The state small savings directorate is confident of maintaining this lead.
West Bengal mobilised Rs 6,268 crore as gross small savings in 1997-98, as against the previous year's Rs 4,541 crore, registering a growth of 38 per cent.
The net collection in 1997-98 was Rs 3,669 crore against Rs 2,142 crore in 1996-97, recording a growth of 71 per cent.
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Uttar Pradesh and Maharashtra are close to West Bengal in terms of performance. Maharashtra came second with a net collection of Rs 2,922 crore. Its gross small savings collection was Rs 5,183 crore.
UP, with Rs 5,975 crore was the third highest collector of gross small savings. In terms of net collection, UP mobilised Rs 2,612 crore.
The total national collection showed an upward movement with Rs 45,045 crore as gross small savings against Rs 33,339 crore in 1996-97, a growth of 35.11 per cent. Net collection was Rs 20,149 crore against Rs 12,131 crore the previous year, a growth of 66 per cent.
Small savings are marketed by small savings directorate in nine instruments of which three appear to be most sought after.
Kisan Vikas Patra was subscribed to the extent of Rs 2,641 crore, followed by Monthly Income Scheme with Rs 1,492 crore, and National Savings Certificate with Rs 610 crore.
State governments are keen that the nine instruments are made popular, as the states will derive direct benefit from their sale. As much as 75 per cent of the net collection comes back to the state as soft loan and 25 per cent is retained by the Centre.
The state governments pay 14.5 per cent interest against the loan. But there is a moratorium of five years and then the principal is repayable in the next 20 years.
For West Bengal, this is the second most important area of fund mobilisation after sales tax. The state has been consistently campaigning, particularly in semi-urban and rural areas, for sale of the nine small savings scheme instruments.