Fiscal deficit at 3.5% of GDP in FY18 at Rs 5.9 trn, meets new estimates

Govt revised its fiscal deficit target in February to 3.5% of GDP from 3.2% of GDP for the 2017/18 fiscal year

Fiscal deficit for 2017-18 worked out to be 3.53 per cent of the GDP, broadly in line with the government's revised estimates.

According to the data released by the Controller General of Accounts (CGA), the revenue deficit was 2.65 per cent of the GDP.

In absolute terms, the fiscal deficit was Rs 5.91 trillion or 99.5 per cent of the Budget estimates.

The government in the Budget, in February, had revised the fiscal deficit target for 2017-18 to 3.5 per cent from the earlier estimate of 3.2 per cent.

It proposes the bring down the fiscal deficit -- the gap between total expenditure and total revenue -- during 2018-19 to 3.3 per cent of the gross domestic product (GDP).

The CGA data, released this evening, further said that the government's total expenditure was Rs 21,426.67 billion or 96.6 per cent of the originally planned.

Its total receipts were Rs 15,510.04 billion or 95.6 per cent of the Budget Estimate.

The data further revealed that revenue deficit during the last fiscal was Rs 4.43 trillion or 101 per cent of the Budget Estimate.

Fiscal deficit is a reflection of government borrowings, which is used to bridge the gap between revenue and expenditure.