The Reserve Bank of India (RBI) said that the combined revenue receipts in 2001-02 (RE) fell short of the budgeted level by 6.4 per cent.
Combined tax revenues declined by 9.9 per cent while non-tax revenues recorded a growth of 8.5 per cent. The combined tax-GDP ratio has shown a declining trend since the beginning of the last decade.
The fall in tax-GDP ration is attributable to the decline in the indirect taxes.
In 2002-03, the combined deficit indicators are budgeted to come down in terms of GDP. The combined government finance deficit for 2002-03 is budgeted at Rs 2,21,987 crore which amounts to 8.7 per cent of GDP as compared with 9.9 per cent in 2001-02 (RE).
Similarly, the revenue deficit at Rs 1,41,489 crore would constitute 5.5 per cent of GDP, compared with 6.6 per cent for 2001-02 (RE). The gross primary deficit (GPD) is budgeted lower at Rs 60,222 crore (2.4 per cent of GDP) than Rs 83,323 crore in 2001-02 (RE).
The reduction in deficit indicators is envisaged through a relatively higher aggregate expenditure of 8.9 per cent.
The combined outstanding debt of the Centre and state governments is estimated to be 69.9 per cent of the revised GDP for the year 2001-02 as against 66.9 per cent at end-March 2001.
The guarantees given by the central government rose from Rs 58,088 crore in nominal terms as at end-March 1993 accounting for 7.8 per cent of GDP to Rs 86,862 crore as at end-March 2001 accounting for 4.2 per cent of the GDP.
The outstanding guarantees given by state governments also increased sharply to Rs 1,68,712 crore as of end-March 2001 from Rs 42,515 crore in March 1993. Further, the combined aggregate expenditure for 2001-02 (RE) was marginally lower than budget estimates. Revenue expenditure was lower by 0.5 per cent whereas capital expenditure was lower by 3.3 per cent.