Boost for P. Chidambaram, fiscal deficit in India for 2013-14 likely to be 4.5 pct

PTI Posted online: Thursday, May 15, 2014 at 0000 hrs
New Delhi : The fiscal deficit in India for 2013-14 fiscal may finally turn out to be 4.5 per cent of GDP, a shade lower than what was estimated by Finance Minister P. Chidambaram.

The revenue deficit too would be lower at 3.2 per cent of GDP for 2013-14, as per the revised estimates to be tabled in Parliament at the time of presentation of final Budget for 2014-15 in July.

The fiscal deficit figure have come in lower from 4.6 per cent or in actual terms Rs 5.24 lakh crore. The revenue deficit as was given in revised estimates in the interim Budget was 3.3 per cent or Rs 3.70 lakh crore.

According to official sources, the final data shows that the development expenditure of the government has been higher by Rs 16,000 crore in 2013-14.

The fiscal deficit, which is the gap between expenditure and revenue, was 4.9 per cent of GDP in 2012-13.

Chidambaram had earlier drawn up a red line for fiscal deficit and planned to contain it at 4.8 per cent of the GDP in 2013-14.

As per current indications, the fiscal deficit has come down mainly on account of expenditure compression and higher realisation from the 2G spectrum auction.

As per the fiscal consolidation roadmap, the deficit is to be reduced further to 4.2 per cent in 2014-15 and 3.6 per cent in 2015-16.

The interim Budget for 2014 has projected the fiscal deficit for 2014-15 fiscal at 4.1 per cent of GDP or Rs 5.29 lakh crore.