NEW DELHI, Dec 4: The "dream budget" of finance minister P Chidambaram is all set to go for a six. The weak United Front government has already agreed to spend much more than what the finance minister budgeted for and now with the exchequer having to shell out another Rs 700 to Rs 800 crore for general elections in the current financial year, the state of public finances would deteriorate further.The mid-year corrective measures announced by the United Front government to take care of the post budgetary commitments, especially with regard to modified award of the fifth pay commission, will be rendered meaningless as far as taming the fiscal deficit is concerned. The government endeavoured to bring down the fiscal deficit to 4.5 per cent of the GDP at the end of 1997-98. Now with increasing commitments, it will spiral to well above 6 per cent of the GDP.As far as the post-budgetary expenses were concerned, the government committed to spend additional Rs 4,100 crore towards modified pay commission award, Rs 960 crore towards fertiliser subsidy, Rs 1000 crore towards food subsidy, Rs 250 crore towards food subsidy and Rs 500 crore towards extra-budgetary support to sick public sector undertakings. Expenses towards the general elections will add to the burden.The government, as part of the mid-year revenue mobilisation exercise, decided to mop up Rs 1000 crore as 3 per cent hike in duty on non-POL imports, Rs 300 crore from 10 per cent CVD on EPCG imports, Rs 180 crore from foreign travel tax and Rs 2,200 crore from investment of PSU shares.It also envisaged savings of Rs 1800 crore from 5 per cent cut in Plan expenditure and Rs 1,400 crore from cut in non-Plan expenditure. There will be no impact for honouring the award of the Tenth Finance Commission, which otherwise would have cost the central government Rs 5,000 crore. It was not budgeted and there will be no outgo during the current financial year as the same will not get the approval of Parliament. The burden, however, will go up to Rs 8,000 crore during the next financial year.
