Keeping fiscal deficit within the budget limit possible — Sinha

The gross fiscal deficit of the government, during the first six months of the current financial year, was Rs 42,592 crore, which was lower by 18.7 per cent compared with fiscal deficit of Rs 52,395 crore in April-September last year, Sinha said.

Measures to control non-Plan and non-developmental expenditure were also yielding results, the Minister said. He added that these include a mandatory 10 per cent cut in budgetary allocation for non-Plan non-salary expenditure of all ministries, departments and autonomous institutions, a complete ban on purchase of new vehicles for next year, 10 per cent cut in the consumption and allocation of funds for expenditure on POL for staff cars, ban on creation of new posts for one year and ban on foreign travel for study tours and seminars.

Replying to another question, the Minister said that the Eleventh Finance Commission had submitted its main report for 2000-2005 on July 7 and a report on additional terms of reference on August 31. The report was under examination.

Some state governments, in their reactions to its recommendations, had expressed views on inter-allocation of share of taxes and grants-in aid to the states. The government would take steps during the fiscal as to what share it should give to the states, in respect of the proposals made by them, Sinha said.

Replying to the question, whether the International Monetary Fund (IMF) had attracted the concern of the government towards the imbalanced growth and high rate of poverty in "World Economic Outlook" report, the Minister said that the government was fully cognisant of the need for equitable economic growth and speedy reduction of poverty.

It was implementing a comprehensive strategy for balanced and planned development, and eradication of poverty which emphasised on accelerated economic growth with a focus on sectors that were employment-intensive, human and social development through basic minimum services and targeted anti-poverty programmes for income generation through self-employment, supplementary wage employment and protective social security.