The Centre will get statistical advantage as fiscal deficit will automatically come down to 6.5 per cent of the gross domestic product during this fiscal from the earlier estimate of 6.8 per cent, after government today came out with a fresh estimate based on a new base year.
With the revision in the base year to 2004-05, GDP at market prices for the 2009-10 fiscal is estimated at Rs 61,64,178 crore against Rs 58,56,569 crore, pegged at the time of Budget for this fiscal. When the Budget was prepared the base year for calculating national income was 1999-2000.
The government today came out with advance GDP estimates for the current fiscal based on the new series. Advance GDP estimates help the government to calculate various data like fiscal deficit.
With the GDP estimated higher, fiscal deficit will automatically come down, if other things remain same.
Fiscal deficit was estimated at Rs 4,00,996 crore, which was 6.8 per cent of the GDP calculated at the time of Budget 2009-10. But this would be only 6.5 per cent when looked at from a new base year.
