With narrowing revenue deficit, aggregate gross fiscal deficit (GFD) is expected to come down from 4.7 per cent to four per cent of GDP in FY04, the Reserve Bank of India (RBI) said in its monthly bulletin (November) released here on Friday.
Measures envisaged in state budgets for the current fiscal reflect continued efforts towards revenue augmentation, expenditure management and public sector reforms, it said.
The decline in GFD is mainly on account of expected improvement in the revenue account of states, it said, adding, the other major deficit indicators - revenue and primary deficits - were also budgeted to be lower in 2003-04 over the previous year.
RBI said revenue receipts of states was budgeted to rise from Rs 2,93,873 crore in FY03 to Rs 3,32,919 crore in the current financial year. Out of total increase in revenue receipts, states own revenue receipts will contribute about 65 per cent while the rest will be accounted by states share in central taxes and grants from the Centre.
As a result of rising debt level, the interest burden of states increased from 13 per cent of revenue receipts in 1990-91 to as much as 24.4 per cent in FY02.
Keeping in view the prevailing soft interest rate scenario, the recently announced debt-swap scheme would help state governments to bring down their interest burden to some extent, the apex bank added.
RBI said aggregate expenditure is budgeted higher at Rs 4,76,039 crore in FY04 over Rs 4,42,609 crore in revised estimates of last fiscal.