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Fiscal deficit narrows to 4.5% in FY14

The deficit is lower than the downwardly revised estimate of 4.6% provided by the government in the budget in Feb

Press Trust of India  |  New Delhi 

The fiscal deficit in 2013-14 stood at 4.5% of GDP, lower than 4.6% projected in the revised estimate, mainly on account of curbs on government expenditure. The fiscal deficit, the gap between government's expenditure and revenue, in actual terms was Rs 5.08 lakh crore as against 5.24 lakh crore projected in the revised estimate. "The fiscal deficit is 4.5% of GDP. Revenue deficit is 3.2% of GDP.

Effective revenue deficit is 2% of GDP," the Controller General of Accounts (CGA) said in the provisional accounts for 2013-2014. The government's total expenditure worked out to be Rs 15.63 lakh crore in the last fiscal as against the original budget estimate Rs 16.65 lakh crore. The expenditure estimate was later revised downwards to Rs 15.90 lakh crore in the interim budget. The revenue collection was Rs 10.15 lakh crore. The revised target was Rs 10.29 lakh crore. The government had chalked out a fiscal consolidation roadmap under which the fiscal deficit needs to be brought down 3% of GDP by 2016-17. The lower fiscal deficit reduces the government's expenditure on interest payment and unlock funds for investments in social welfare programmes as well as infrastructure development.

Target of fiscal deficit bettered in FY '14
Revised Estimate (RE) for 2013-14 in Rs cr Actual during April-February in Rs cr April-February Actual As % of RE in 2012-13/2013-14
i) Total Receipts 10,65.895 10,55,336 101.1/99
Of which a) Tax Receipts 8,36,026 8,16,046 100/97.6
b) Non-Tax Revenues 1,93,226 1,99,233 105.9/103.1
c) Non-Debt Capital Receipts 36,643 40,057 107.6/109.3
ii)Total Expenditure 15,90,434 15,63,485 98.6/98.3
Of which a) Plan Expenditure 4,75,532 4,53,085 96.4/95.3
b) Non-Plan Expenditure 11,14,902 11,10,400 99.5/99.6
Fiscal Deficit (2-1) 5,24,539 5,08,149 94.1/96.9
Note: Receipts are not included market borrowings as these are used to finance fiscal deficit
Source: Controller General of Accounts

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First Published: Fri, May 30 2014. 18:31 IST