Fiscal deficit in 2003-04 within target

Selloff proceeds keep deficit at 4.57% of GDP

The fiscal deficit of the Centre for 2003-04 is 4.57 per cent of the Gross Domestic Product (GDP), which is even lower than the revised estimate of 4.8 per cent of GDP that was projected in the interim budget for 2004.

The final government accounts released by the Controller General of Accounts today, shows that the government has also succeeded in reining in the revenue deficit to 3.54 per cent of the GDP, which is again less than the 3.6 per cent projected in the revised estimates.

To ensure accuracy the CGA releases the final accounts of the Centre with a one month time lag on the last day of May. However there was a further delay this time as the clearance from the Finance Minister for releasing the figures was obtained by the department today.

The total receipts of the Centre for 2003-04, as per the figures was Rs 3,45,976 crore while the aggregate expenditure was Rs 4,71,936, leaving an uncovered deficit of Rs 1,25,960 crore.

Of the total receipts, disinvestment receipts accounted for Rs 16,048 crore.

This was Rs 1,548 crore more than what had been projected in the revised estimate for the fiscal.

The success of the disinvestment programme was the main factor behind the impressive showing on the fiscal and revenue deficit front for National Democratic Alliance government in 2003-04.

After several years, the, the total receipts have logged Rs 3,824 crore more than the revised estimates for the fiscal.

The net tax revenue has almost hit the bulls eye at Rs 1,86,932 crore, which is just fraction short of the revised estimate at Rs 607 crore. Non tax revenue has however exceeded the target at Rs 76,088 crore.

On the capital account, recovery of loans based on the debt swap by state governments has also exceeded the revised target of Rs 64,625 crore by Rs 2,303 crore.

A reflection of the comfortable fiscal position of the Centre is the huge surplus cash with the Centre at the end of the fiscal at Rs 17,764 crore. This is almost double the surplus cash level for 2002-03 at Rs 8,905 crore.

The government had a nil Ways and Means advances with the RBI.

Due to the aggressive reduction in the government's debt liabilities, the primary deficit, which measures the real deficit of the Centre minus its interest liabilities has also come down to Rs 1,699 crore against a revised estimate of Rs 7,548 crore.

Of the total expenditure of the Centre, plan expenditure has been Rs 1,22,149 crore, which is as per the target.

On a more positive note, the non plan expenditure has actually been Rs 2,961 crore at Rs 3,49,787 crore, which is less than the revised estimate of Rs 3,52,748 crore.

In 2002-03, non plan expenditure of the Centre had exceeded the revised estimate by almost Rs 11,000 crore, whereas plan expenditure fell short of target by nearly Rs 1,500 crore.