Enthused by higher mop up from the sale of PSU shares and buoyant direct tax collection, the government on Thursday indicated that fiscal deficit will be less than 4.8 per cent of GDP during 2003-04.

"It will be a pleasant surprise. If ever, we will be able to achieve the fiscal deficit target, it will be this year," senior finance ministry officials said on Thursday.

The government expects Rs 700-800 crore (Rs 7-8 billion) higher mop-up from the sale of PSU shares at about Rs 15,300 crore (Rs 153 billion) compared to the budgeted Rs 13,200 crore (Rs 132 billion) and revised estimate of Rs 14,500 crore (Rs 145 billion).
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While there was buoyancy in direct taxes, the indirect tax collection may see some shortfall.

"The high mop up from divestment and higher growth in direct taxes will offset the shortfall in indirect taxes," the officials said.