Fiscal Deficit Touches 3.2 % Of Gdp

The fiscal deficit touched 3.2 per cent of the GDP at the end of November 2001, 68 per cent of the budgeted target of 4.7 per cent of GDP for 2001-02, with a welcome jump in plan expenditure.

In absolute terms, the deficit was Rs 79,133 crore at the end of November, as against the budgeted estimate of Rs 1,16,314 crore. In the corresponding month last fiscal, the figure was almost 58 per cent of the budgeted target at Rs 64,269 crore. The revenue deficit which measures the shortfall in current revenue in meeting current expenditure, touched 75.2 per cent of its budgeted estimate as against 55.1 per cent in the corresponding period last year.

 

The major factor responsible for the poor fiscal showing was a slowdown in revenue receipts, particularly tax revenue. Till the end of November, the government had collected only 40.8 per cent of its net tax revenue (Rs 66,521 crore) against 50.1 per cent (Rs 73,520 crore) last year. This pushed down the rate of growth of total revenues to only 47.7 per cent as against 54 per cent last year, despite an impressive growth in non-tax revenue of 64 per cent which is slightly higher than last year