Fiscal as well as revenue deficit position improves

In the Budget Estimates 2008-09, the total expenditure is estimated at Rs.750,884 crores. Of this, the Plan Expenditure is placed at Rs.243,386 crore. As a proportion of total expenditure, it will be 32.4 per cent. Non-Plan Expenditure is estimated at Rs. 507,498 crore. The revenue deficit for the current year will be 1.4 per cent (against a BE of 1.5 per ent) and the fiscal deficit will be 3.1 per cent(against a BE of 3.3 per cent).

The revenue receipt of the Central Government for 2008-09 are projected at Rs.602,935 crore and the revenue expenditure at Rs.658,119 crore. Consequently, the revenue deficit is estimated at Rs.55,184 crore, which amount to 1.0 per cent of GDP. The fiscal deficit is estimated at Rs.133,287 crore which is 2.5 per cent of GDP.

The Budget estimates say, the target for fiscal deficit under the FRBM Act will be easily achieved. In the case of revenue deficit, the target of annual reduction of 0.5 per cent will be met. However, because of the conscious shift in expenditure in favour of health, education and the social sector, one more year may be need to eliminate the revenue deficit.

Source : Press Information Bureau

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