constituted - of Planning Commission

turned positive and rose to reach a level of `121,003 crore in 2007-08. In theEleventh Plan, the BCR went down on account of the higher non-planexpenditure growth on account of pay revision, increased expenditure onsubsidies and fiscal concessions. As mentioned earlier, this is sought to bereversed in 2011-12 (BE).Fig.2:Current Revenue and Aggregate ResourcesBased on the above facts, it is clear that there has been no obvious trend in theway the fiscal indicators have moved. There is a break in trend on account ofthe global crisis and the fiscal stimuli to boost growth. Given that by far thefiscal deficits are structural components, the fuller reversion to mandated fiscalconsolidation would need to be phased and it is useful to keep the mandate ofthe Medium Term Fiscal Policy Statement (MTFPS) as the limits for Centre’sborrowings. Given that BE 2011-12 has sought to raise the GBS above the levelof the borrowings, there is a need to maintain this going forward and in fact getincreasingly higher resources through Balance from Current Revenues. TheGroup’s final estimates reflect this.The Group’s final estimates indicate that the GBS will grow progressively byWorking Group Report on Centre’s Financial ResourcesPage-8