New Delhi: Finance Minister Jaswant Singh today (Feb 3, 2004) projected a growth of 7.5-8 per cent for the current year in the face of strong economic fundamentals.

"Economic growth indices in the current year are very encouraging. With inflation at 4-4.5 per cent, this year we expect the growth rate of our GDP (Gross Domestic Product) to be between 7.5-8 per cent, Singh said presenting the Interim Budget for 2004-05 in the Lok Sabha.

Though there are higher growth estimates that have been made, for the present "we prefer to remain with the cited figures," he said.

Noting that the foreign exchange reserves crossed $ 100 billion in mid-December, Singh said they continue to grow, liberating from the mentality of want.

Giving the Budget estimates for 2004-05, he said the total expenditure is estimated at Rs 457,434 crore, of which Rs 135,071 crore is for plan and Rs 322,363 crore for non-plan expenditure.

He said the revised estimates show a net decrease in expenditure of Rs 11,143 crore as compared to the Budget estimates. This reduction has been achieved despite additional expenditure on rural development, Sarva Shiksha Abhiyan, Delhi Metro Rail Project and additional budgetary support for the Railways.

Net tax revenues for the Centre are estimated at Rs 187,539 crore as compared to Budget estimate of Rs 184,169 crore, an increase of Rs 3,370 crore.

Non-tax revenue is estimated at Rs 75,488 crore, Rs 5722 crore more than the estimated level of Rs 69,766 crore, he said adding disinvestment receipts, at Rs 14,500 crore, are also higher than the Budget estimate of Rs 13,200 crore.