Fiscal deficit pegged at 5.7% of GDP
Sinha pegs fiscal deficit at 5.7% of GDP, up from the targeted figure of 4.7%
In its Union Budget speech, finance minister Yashwant Sinha announces that the fiscal deficit stands at 5.7% of the Gross Domestic Product, higher than 4.7% estimated for the current fiscal year. For fiscal 2002-03, Sinha fixed a fiscal deficit target of 5.3% of GDP.
In 2000-01, the estimated fiscal deficit target of 5.1% was achieved, despite pressures on public finances on account of deceleration in disinvestment programme, natural calamities and the relief to consumers of petroleum products.
Excitedly, the finance minister, in the last budget, had fixed a fiscal deficit target of 4.7% for fiscal 2001-02.
Ironically, since the budget announcement of 1991-92, there hasn't been even a single speech delivered by the finance minister without a reference to the need for reducing fiscal deficit. The Common Minimum Program of the United Front government had made a solemn promise to reduce the fiscal deficit to 4%. The BJP-led alliance also showed its earnestness in trying to garner more resources.
| Year |
Fiscal deficit |
| 1990-91 |
7 |
| 1991-92 |
5 |
| 1992-93 |
5.1 |
| 1993-94 |
6.4 |
| 1994-95 |
4.8 |
| 1995-96 |
4.3 |
| 1996-97 |
4.1 |
| 1997-98 |
4.8 |
| 1998-99 |
5.1 |
| 1999-2000 |
5.4 |
| 2000-01 |
5.1 |
| 2001-02 |
5.7 |
| 2002-03 (B.E) |
5.3 |
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