Fiscal Deficit For 1997-98 May Shrink

The actual fiscal deficit for 1997-98 is working out to 6.6 per cent of gross domestic product and not the 6.1 per cent reported in the revised estimates for the year.

The United Front, which had presented the 1997-98 budget had projected the fiscal deficit at 4.5 per cent of gross domestic product. However, on account of shortfall in revenue collections, little or no realisation of disinvestment proceeds and a big spurt in small savings receipts pushed up the fiscal deficit. In fact, less the small savings spurt the fiscal deficit works out to 5.8 per cent in the revised esimates for 1997-98.

This is after the government has taken into account the Rs 7,000 crore in additional revenue shortfall, which was not reported in the revised estimates. Part of the revenue shortfall has been reported in the annual report of Finance Ministry for 1997-98.

According to the annual report, the shortfall in direct tax collections over the revised estimates shown in the budget worked out to Rs 3,751 crore. In addition, the receipts under the VDIS are Rs 1,000 crore short from the sum of Rs 10,050 crore reported in the revised estimates for 1997-98.

The balance has been brought up by the shortfall under customs receipts, while excise has in fact improved marginally by Rs 82 crore from what was reported in the revised estimates.