The Centre can take heart from the fact that the 12 per cent increase in its total expenditure during April-October 2001 is in line with the budgeted expenditure of Rs 3,74,782 crore for the entire fiscal.
Total expenditure during the nine months stands at Rs 1,72,400 crore compared with Rs 1,54,006 crore in the corresponding period in 2000, thus accounting for 46 per cent of the budgeted estimate for the entire financial year.
The composition of non-plan expenditure, which the Centre wants to cut down sharply, and plan expenditure continues unchanged at 73.44 per cent and 26.55 per cent of the total expenditure during the nine months, respectively.
In October, the government's expenditure grew by a higher rate of 14.5 per cent compared with 12.6 per cent recorded in the same month of 2000, the Centre for Monitoring Indian Economy (CMIE) has said in its latest monthly review.
"Earlier in July 2001, the government had announced its intention to increase its expenditure to push economic growth. However, it would be too early to say that the recent rise (in expenditure) was the result of this announcement," the Centre said.
Plan expenditure remained 12 per cent higher during the April-October compared with 8 per cent increase in the same period of 2000. "The higher growth reflects robust growth in September and October. During these two months, the plan expenditure recorded 35 per cent and 53 per cent growth, respectively," CMIE said.
Unlike plan expenditure, growth in non-plan expenditure fell 4 per cent in October 2001 to Rs 19,474 crore (Rs 18,708 crore in October 2000). "This is the third month in a row of poor growth in non-plan expenditure. As a result, the growth in non-plan expenditure fell to 12 per cent from 22 per cent till July 2001," the review said.
