Fiscal deficit to be a tad high at Rs 1,37,407 cr in 2004-05

Govt's fiscal deficit is budgeted at Rs 1,37,407 cr for 2004-05, which is over Rs 5,300 crore more than revised estimate of previous year.

Government's fiscal deficit is budgeted at Rs 1,37,407 crore for current fiscal which is over Rs 5,300 crore more than the revised estimate of the previous year, mainly due to higher spending and despite putting in place the Fiscal Responsibility and Budget Management Act.

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Though in absolute terms the fiscal deficit is on higher side, notwithstanding 25 per cent rise in tax mop up, Finance Minister P Chidambaram, presenting the Budget for 2004-05, expects the deficit as a proportion of GDP to be lower at 4.4 per cent in 2004-05 as compared to revised estimate of 4.8 per cent a year ago.

However, revenue deficit has been budgeted to fall to Rs 76,171 crore this year, about 24 per cent lower than the revised estimate of Rs 99,860 crore in 2003-04.

With an estimated rise in expenditure mainly on revenue account, the Centre's total expenditure for 2004-05 is budgeted to go up to Rs 4,77,829 crore as against Rs 4,74,255 crore.

The UPA Government's Budget estimates plan expenditure to go up, while non-plan expenditure to fall despite increase in interest liabilities during this year.

Plan expenditure has been budgeted at Rs 1,45,590 crore during this year as compared to the revised estimate of Rs 1,21,507 crore in the previous year.

While non-plan expenses are slated to fall to Rs 3,32,239 crore this fiscal against the revised estimate of Rs 3,52,478 crore in 2003-04.

Government's total revenue expenditure is slated to go up by over Rs 22,600 crore to Rs 3,85,493 crore this fiscal.