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|
|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|