The Hindu : Business : Fiscal deficit contained in 2005-06 as per target

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Friday, Jun 02, 2006

Business

Business

Fiscal deficit contained in 2005-06 as per target

Special Correspondent

`Performance reflects commitment to fiscal consolidation'

NEW DELHI: The Centre has succeeded in virtually containing the fiscal deficit during 2005-06 at the level targeted in the revised estimates.

With the revised estimates for fiscal deficit placed at Rs. 146,175 crore or 4.1 per cent of the country's GDP (gross domestic product), the actual figures turned out to be only a wee bit higher at Rs. 146,348 crore, according to data released by the Controller General of Accounts (CGA) here.

"The fiscal performance during 2005-06 reflects the commitment of the Government to fiscal consolidation and is in line with [the] roadmap envisaged under the Fiscal Responsibility legislation,'' an official release said here on Thursday.

Comparatively, however, the Centre's efforts on this front translated into a far better performance during 2004-05 as the actual fiscal deficit that year was only 89.9 per cent of the revised estimates as against 100.1 per cent during 2005-06.

The revenue deficit, on the other hand, worked out to be slightly higher than the revised estimates, which, at Rs. 94,644 crore, was 3.1 per cent higher than the revised estimates of Rs. 91,821 crore.

In effect, the actual revenue deficit translated to 2.7 per cent of the GDP, at the same level as in the budget estimates (BE), which was slightly higher than the revised estimates of 2.6 per cent of the GDP.

The marginally higher revenue deficit was largely due to a shortfall in revenue receipts which could not be fully offset by savings in revenue expenditure, the release said.

During the year, the actual revenue receipts were placed at Rs 3,43,883 crores, which worked out to 98.7 per cent of the revised estimates of Rs 3,48,474 crores, while the expenditure on revenue account at Rs 3,26,635 crores was 100.2 per cent of the revised estimates of Rs 3,26,142 crores.

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