Revenue deficit for 2009-10 estimated At 4% & fiscal deficit 5.5% of GDP

In the Interim Budget-2009-10, Gross Tax Revenue receipts at the existing rates of taxation are estimated at Rs.6,71,293 crore and Centre's net tax revenue at Rs.5,00,096 crore for the fiscal 2009-10. This was stated by the Finance Minister Shri Pranab Mukherjee while presenting the Interim Budget for 2009-10 in Lok Sabha today.

With revenue expenditure estimated at Rs.8,48,085 crore, the revenue deficit amounts to 4.0 per cent of GDP. Fiscal Deficit is estimated at Rs.3,32,835 crore which is 5.5 per cent of GDP. This would be lower than in 2008-09, but higher than would be appropriate under normal circumstances.

However, conditions in the year ahead are not likely to be normal and, therefore, the high fiscal deficit is inevitable. We will return to FRBM targets once the economy is restored to its recent trend growth path, the Finance Minister added.

Source : Equity Bulls

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