Combined fiscal deficit up at 9 per cent of GDP

Our Banking Bureau

Mumbai, Aug 28: THE non-realisation of targeted disinvestment receipts and an increase in expenditure have played its part in the burgeoning gross fiscal deficit (GFD), stated the Reserve Bank of India (RBI) in its annual report for 2000-2001.

The revised estimates for 2000-2001 showed a gross fiscal deficit, combining the deficits of the Centre and states, at 9.1 per cent of gross domestic product (GDP). This is marginally higher than the estimated figure of 8.8 per cent. The aggregate expenditure at Rs 6,09,906 crore in the revised estimates witnessed a growth of Rs 13,675 crore. Revenue receipts at Rs 3,95,045 crore recorded relatively low growth of Rs 9,723 crore in the revised estimates.

During the current fiscal, the budget estimates envisage reduction in all the major deficit indicators. Combined GFD for the Centre and states is placed at 8.1 per cent as against 9.1 per cent in the revised estimates for the 2000-2001.

Revenue and primary deficits are placed at 5.1 per cent and 2.3 per cent of GDP, respectively, as against 5.9 per cent and 3.4 per cent in the revised estimates of the last fiscal.

The combined tax collection is projected at Rs 3,66,927 crore, an increase of 15.4 per cent over the previous fiscal. The combined tax to GDP ratio is budgeted to rise to 14.8 per cent in 2001-2002 from 14.6 per cent in 2000-2001 and 14 per cent in 1999-2000.