CII plans to launch a new index to judge the quality of fiscal deficit

The CII is planning to launch a new index to judge the quality of fiscal deficit in states and the Centre, starting from 2004-05. The index will be based on six parameters that include fiscal deficit, revenue deficit, revenue expenditure, capital expenditure, tax revenues and debt payment or servicing. The index, expected to be readied over next few months, will be finalised after extensive consultation with economists. 

“In these indicators, there are few perceived to be good for the quality of fiscal deficit, while others are not,” an official remarked.