Union Budget 1999-2000 Govt. of India Ministry of Finance

Budget Speech


Yashwant Sinha

Speech of Shri Yashwant Sinha
Finance Minister, Government of India
27th February, 1999

but.gif (597 bytes) Non Plan Expenditure

54. Non-Plan expenditure in 1999-2000 is estimated to be Rs.2,07,003 crore compared to Rs.2,13,541 crore in revised estimates 1998-99. This would have actually been Rs.2,32,003 crore but for a change in the system of accounting of loans to States and UTs against net Small Savings collections with effect from 1.4.99. The changeover, which is in the interest of transparency and viability of the Small Savings schemes, is being made in deference to a suggestion in the Inter State Council in December 1998 on delinking the small savings from Central Government’s fiscal deficit concerns. A Committee set up under the chairmanship of Shri R.V. Gupta has gone into the issue. Based on the Committee’s recommendations and with the concurrence of the Comptroller and Auditor General of India, the transactions will now be under a newly created National Small Savings Fund in the Public Account, which will reflect the Treasury Banking nature of these operations. A copy of the Committee’s report is being placed in the library of the Parliament for Hon’ble Members’ information.

55. Major items of increase in non-Plan expenditure are Interest payments, Rs.10,752 crore, Defence expenditure, Rs.4,494 crore, and grants to States, Rs.3,621 crore. A provision of Rs.1,735 crore has been made for non-Plan loans to public sector enterprises mainly for payment of salaries and wages to the employees of sick and convalescent PSUs.

56. Rs.45,694 crore are being provided for Defence expenditure against Rs.41,200 crore in revised estimates 1998-99. Further need based budgetary support will be provided during the course of the year





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