Fiscal deficit at Rs 1,27,975 crore

The Centre's fiscal deficit was up marginally by 1.6 per cent at Rs 1,27,975 crore (Rs 1279.75 billion) during 2004-05 from Rs 1,25,960 crore (Rs 1259.60 billion) in 2003-04, despite efforts to cut wasteful spending and push up revenue.

The revenue deficit, however, came down by significantly by 19 per cent at Rs 79,558 crore (Rs 795.58 billion) in 2004-05 from Rs 98,308 crore (Rs 983.08 in 2003-04, as per the figures released by Controller General of Accounts.

The fiscal deficit was at Rs 1,27,975 crore (4.1 per cent of GDP), which was much lower than the revised estimate of Rs 1,39,231 crore (4.5 per cent) but higher than Rs 1,25,960 crore recorded during 2003-04.

The revenue deficit was lower at Rs 79,558 crore (2.5 per cent of GDP) than the targeted Rs 85,165 crore (2.7 per cent) and that from Rs 98,308 crore of 2003-04.

During 2004-05, the government was able to rein in fiscal and revenue deficit mainly by cutting its spending. The total receipts increased to Rs 3,70,473 crore during the fiscal compared to the revised estimate of Rs 3,66,560 crore (Rs 3665.6 billion), mainly on account of higher non-tax revenues.

The tax collections were marginally lower at Rs 2,24,857 crore (Rs 2248.57 billion) compared to the targeted Rs 2,25,804 crore (Rs 2258.04 billion).

Non-tax revenues amounted to Rs 80,330 crore (Rs 803.30 billion) during the fiscal compared to the estimated Rs 75,100 crore (Rs 751 billion).

On the spending side, plan expenditure amounted to Rs 1,32,160 crore (Rs 1321.6 billion) last fiscal, which is a significantly lower than the estimated Rs 1,37,387 crore.

Non-plan expenditures were at Rs 3,66,288 crore (Rs 3662.88 billion) which was lower than estimated Rs 3,68,404 crore. 

Interest payments, which form a major portion of the non-plan spending, increased to Rs 1,26,540 crore (Rs 1265.40 billion) in 2004-05 compared to the revised estimate of Rs 1,25,905 crore (Rs 1259.05 billion).

The total expenditure was at Rs 4,98,448 crore (Rs 4984.48 billion), which was less than the revised estimate of Rs 5,05,791 crore (Rs 5057.91 billion).

Primary deficit, which is fiscal deficit minus the interest outgo, amounted to a mere Rs 1,435 crore (Rs 14.35 billion) as against the revised estimate of Rs 13,326 crore (Rs 133.26 billion).

The centre's market borrowing was at Rs 54,201 crore (Rs 542.01 billion) during the last fiscal, as against the revised estimate of Rs 45,943 crore (Rs 459.43 billion).