Efficacy of fiscal deficit is limited by revenue deficit - the lower the latter, the bigger the space for capex
Union Finance Secretary Ratan Watal said the classification is losing its significance
The move will link government spending to its eventual outcome more effectively
Centre likely to switch to a more globally relevant system of classifying spending as revenue expenditure and capital expenditure
Ministries, depts can appraise non-Plan projects of less than Rs 300 cr, against earlier limit of Rs 75 cr
The government estimates fiscal deficit in 2016-17 to be Rs 5.33 lakh crore or 3.5% of GDP
It would increase the focus on reducing the revenue deficit and enhancing capital spending
Despite wanting to, the government has managed to spend very little on capital account