From the Archives (March 1, 1969): Deficit finance of Rs. 250 crores

The Union Budget for 1969-70, presented to the Lok Sabha today [February 28, New Delhi] by Mr. Morarji Desai, envisages a deficit of the order of Rs. 250 crores. Mr. Desai said the revenue receipts for the current year (1968-69) were Rs. 2,749 crores, Rs. 11 crores less than the estimated Rs. 2,760 crores. Expenditure was also higher by Rs. 116 crores, at Rs. 2,629 crores. For the Budget year 1969-70, Mr. Desai estimated the revenues at current rates of taxation at Rs. 2,900 crores. Mr. Desai said the total gross revenue of the Centre including additional taxation in 1969-70 would be Rs. 3,519 crores of which Rs. 519 crores would accrue to the States. He assumed credit for a higher level of internal borrowing – Rs. 106 crores in 1969-70 against Rs. 81 crores in 1968-69 – and external borrowings Rs. 691 crores against Rs. 685 crores in 1968-69. Of the fresh tax yield the Centre’s share would be Rs 100 crores – Rs 80 crores from excise, Rs. 11 crores from direct taxes and Rs. 9 crores from customs. The States would get Rs. 27 crores as their share. The deficit for the current year is Rs. 30 crores less than the original estimate of Rs. 290 crores. The revenue estimates for 1969-70, Mr. Desai said, showed an increase of Rs. 151 crores, at the existing taxation level.