Fiscal deficit virtually managed at RE level
The Centre has virtually managed to rein in fiscal deficit to the level of revised estimates during 2005-06.india Updated: Jun 01, 2006 17:27 IST
The Centre has virtually managed to rein in fiscal deficit to the level of revised estimates during 2005-06.
Against revised estimates for fiscal deficit at Rs 1,46,175 crore or 4.1 per cent of GDP, the actual figures turned out to be little higher at Rs 1,46,348 crore, according to figures released by Controller General of Accounts.
"The fiscal performance during 2005-06 reflects the commitment of the Government to fiscal consolidation and is in line with roadmap envisaged under the Fiscal Responsibility legislation," an official release said.
However, the performance on this front was far better during the previous fiscal. Actual fiscal deficit was just 89.9 per cent of the revised estimates during 2004-05 against 100.1 per cent during 2005-06.
Revenue deficit, on the other hand, turned out to be bit higher than the revised estimates. It stood at Rs 94,644 crore , which is 3.1 per cent higher than the revised estimates of Rs 91,821 crore.
The actual revenue deficit constituted 2.7 per cent of GDP, same as the Budget Estimate, but higher than the revised estimates of 2.6 per cent.
The deterioration in revenue deficit is largely on account of shortfall in revenue receipts, not fully offset by savings in revenue expenditure, the release said.
Actual revenue receipts stood at Rs 3,43,883 crore, representing 98.7 per cent of revised estimates of Rs 3,48,474 crore, whereas expenditure on revenue account at Rs 3,26,635 constituted 100.2 per cent of RE of Rs 3,26,142 crore.
During 2004-05, revenue deficit figures were better than 2005-06. Revenue deficit was 92 per cent of the revised estimated in 2004-05.
It was because comparitive revenue receipts compared to RE were better in 2004-05 while revenue expenditure was same as in 2005-06.
While revenue receipts were 101.7 per cent of revised estimates during 2004-05, revenue expenditrue was 100.2 per cent of RE.
During 2005-06, tax revenue has fallen short by 1.5 per cent of revised estimates. It stood at Rs 2,69,992 crore against RE of 2,74,139 crore.
Non-tax revenue was tad lower than RE by 0.6 per cent by standing at Rs 73,891 crore against estimates of Rs 74,335 crore.
Revised estimates for 2005-06 pegged fiscal deficit at 4.1 per cent of GDP against 4.3 per cent in the budget estimates. Revenue deficit was also estimated lower at 2.6 per cent against 2.7 per cent in the budget estimates.
For the current fiscal, fiscal deficit is estimated at 3.8 per cent of GDP and revenue deficit at 2.