Revenue deficit revised to 4.4% of GDP, fiscal deficit in estimated at 6%

The current year is expected to end with a revenue deficit of Rs.2,41,273 crore as against the budgeted figure of Rs.55,184 crore. Accordingly, the Revised revenue deficit stands at 4.4 per cent of GDP against 1.0 per cent in the Budget Estimates. Similarly, the fiscal deficit for 2008-09 has gone up from Rs. 133,287 crore in the BE to Rs. 326,515 crore in the RE. The revised fiscal deficit is estimated at 6 per cent of the GDP as against the budgeted figure of 2.5 per cent.

Non-Tax Revenues in the revised Estimates are Rs. 96,203 crores, against the Budgeted Estimates of Rs. 95,785 crore for 2008-09, showing an increase of Rs. 418 crore.

The Revised Estimates of Tax collection have been projected at Rs. 6,27,949 crore as against the Budgeted Estimate of Rs. 6,87,715 crore. This shortfall is primarily on account of the Government's pro-active fiscal measures initiated to counter the impact of global slowdown on the Indian economy. A substantial relief of about Rs. 40,000 crore has been extended through tax cuts, including a fairly steep across the board reduction in central excise rates in December 2008. Despite this, it is expected that the tax collection in 2008-09 would exceed last year's collection.

Source : Equity Bulls

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