Lower expenditure limits fiscal deficit at targeted 3.4%

Lower expenditure limits fiscal deficit at targeted 3.4% Fiscal deficit for 2018-19 came in at 3.9% of the GDP marginally lower than the 3.4% projected in the revised estimates of the Budget, mainly on account of lower expenditure and increase in non tax revenue.  In absolute terms , the fiscal deficit at the end of March 31, 2019 , stood at Rs. 6.45 lakh crore as against Rs 6.34 lakh crore in the revised estimates of the Budget.

The fiscal deficit for 2018-19 works out to 3.39% of the GDP , as per data released by the Controller General of Account. Although in absolute terms the fiscal deficit has gone up , as a percentage of GDP the deficit figure has come down marginally, mainly on account of gross domestic product expansion in 2018-19.

GDP at current market prices in 2018-19 is estimated at Rs 190.10 lakh crore , a 11.2% growth over Rs 170.95 lakh crore in 2017-18. Non tax revenues during the 2018-19 fiscal stood at Rs 2.46 lakh crore marginally higher than the Rs. 2.45 lakh crore in the revised estimates of Budget.

However, tax revenue lagged at Rs 13.16 lakh crore during the last fiscal , as against Rs 14.84 lakh in the revised estimates. Total receipts stood at Rs 16.66 lakh crore during the fiscal , compared to Rs 18.22 lakh crore in the revised estimates.