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Government Contains Fiscal Deficit at 4%
May 19, 2015

Bettering its own financial targets, the government has contained the fiscal deficit at 4 percent of GDP for 2014-15 at Rs 5,01,880 crore. The revenue deficit has also been confined to 2.8 percent, beating the budget target of 2.9 percent for the last fiscal.

  • The gross tax collection registered a growth of 9 per cent in 2014-15 and stood at Rs 12,45,037 crore.

  • Fiscal deficit, the gap between the government's expenditure and revenue, is lower than the downwardly revised estimate of 4.1 percent.

  • The fiscal deficit at the end of 2014-15, stands at Rs 5,01,880 crore which is 98 percent of the projected figure in Revised Estimate for 2014-15.

  • Fiscal deficit as a percentage of GDP is 4.0 percent as against the RE of 4.1 percent.

  • Revenue deficit at the end of 2014-15 is Rs 3,58,306 crore which is 99 percent of the projected figure in the Revised Estimate 2014-15 and is 2.8 percent of the GDP as against the Revised Estimate of 2.9 percent,

  • Revenue deficit refers to the shortfall in total government revenue realisation from the targeted figure.

  • Devolution of tax collections to states at the end of 2014-15 was Rs 3,37,808 crore, which is higher by Rs 19,578 crore over the previous financial year.

  • The Non Tax Revenue stood at Rs 1,96,959 crore (90% of Revised Estimate).

  • Plan Expenditure at the end of 2014-15 stood at Rs 4,35,621 crore while Non-Plan Expenditure during the same year has been Rs 11,91,140 crore (99.8% of Revised Estimate)

The lower fiscal deficit reduces the government's expenditure on interest payment and unlocks funds for investments in social welfare programmes as well as infrastructure development.


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