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Modest divestment proceeds, tax collections flayed

The Economic Survey 1999-2000 suggests the failure to meet the divestment targets and growth targets in tax collections is a ''cause for concern" and a pressing issue confronting the country.

During the current year, the fiscal situation has come under ''tremendous strain'' arising out of certain post-budgetary expenditure commitments. There has been a larger outgo on account of defence and pension payments that could not be fully anticipated at the time of budget formulation.

Besides, the divestment proceeds have been ''modest'' compared to the target set for 1999-2000. On the revenue side, the growth in tax collections is running below the target. ''These factors are cause of concern for the fiscal situation,'' says the survey.

The fiscal parameters for the nine months (April-December 1999) ''reveal a worrisome trend.'' Revenue receipts have increased by 15.4 per cent at Rs 1.15 trillion compared with Rs 996.91 billion in the same period of last year.

Other receipts (mainly divestment receipts) were only Rs 13.83 billion against the budgeted target of Rs 100 billion.

The borrowings and other liabilities have shown a high growth of about 21 per cent over the comparable level achieved in the same period last year.

UNI

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