Govt meets Revised Fiscal Deficit estimates for 2005-06

New Delhi, June 1 (UNI) The government today claimed that it has met the Revised Fiscal Deficit estimates for 2005-06 of 4.1 per cent of GDP and placed the Revenue Deficit of 2.7 per cent.

"The fiscal performance during 2005-06 reflects the commitment of the Government to fiscal consolidation and is in line with roadmap envisaged under the Fiscal Responsibility legislation," a Finance Ministry release said here.

The estimates of Revenue and Budget deficits were given in the Provisional Accounts for the financial year 2005-06.

The Revenue Deficit performance has been 2.7 per cent, same as Budget Estimate 2005-06, but higher than the Revised estimate of 2.6 per cent. The deterioration in Revenue deficit is largely on account of shortfall in revenue receipts not fully offset by savings in revenue expenditure.

The Gross tax receipts of Rs 3,65,874 crore shows a shortfall of Rs 4,267 crore against the Revised Estimates of Rs 3,70,141 crore.

This shortfall in gross tax collections has been partly due to realisation of receipts of Rs 2,111 crore pertaining to fiscal 2005-06 in April 2006. After taking credit for this amount, the Revenue deficit would stand at 2.6 per cent of GDP as projected in the Revised Estimates 2005-06.

Primary deficit, which excludes interest payments expenditure from fiscal deficit and is, therefore, an indicator of the current fiscal stance of the Government, has shown an improvement from 0.5 per cent in Budget and Revised Estimates 2005-06 to 0.4 per cent in the Provisional Accounts.

The deficit indicators in the Provisional Accounts are with reference to Revised GDP data released by CSO on May 31, 2006.

UNI GS CS ND1604