The Economic Survey on Friday pegged the fiscal deficit for 2010-11 at 4.8 per cent, lower than the Budgetary estimates of 5.5 per cent, on the back of higher realisation from 3G spectrum auction and buoyancy in revenues.
India's fiscal deficit had ballooned to 6.3 per cent of the GDP in 2009-10 in view of stimulus spending worth billions of dollars to combat global financial meltdown, and was pegged at 5.5 per cent for the current fiscal.
In the Budget 2010-11, Finance Minister Pranab Mukherjee had estimated fiscal deficit to be Rs 3,81,408 crore (Rs 3814.08 billion).
"With growth reverting to pre-crisis levels in the current fiscal, revenues remaining buoyant and a much higher than budgeted realisation in in non-tax revenues arising from 3G/BWA auctions, there was headroom for higher levels of expenditure a the given fiscal deficit targets," the Economic Survey 2010-11 tabled in the Parliament said.
It said the government has followed the path of fiscal consolidation during April-December FY'11, as it partially withdrew the sops given to the industry in 2008 and 2009.
The government had in 2010 mobilised Rs 1.08 lakh crore from auctioning of spectrum for 3G and broadband wireless access (BWA) services.
"The Budget for 2010-11 had begun the process of fiscal consolidation with a partial withdrawal of the stimulus measures as at that juncture there was clear evidence of economic recovery," the Survey said.
Stimulus package provided by the government at the time financial meltdown stimulus package helped India to grow by 6.8 per cent in 2008-09, and by 8 per cent in 2009-10. "The policy stance was to continue to aid the growth momentum in the short run to facilitate its attaining pre-crisis levels and simultaneously to address long run sustainability concern," said the Survey.