Fiscal deficit for 2014-15 at 4 per cent of GDP

NEW DELHI: The provisional numbers show government’s fiscal deficit at 4% of GDP in 2014-15, an improvement over the revised estimate of 4.1% of GDP.

Lower spending than budgeted helped compress deficit to below budgeted.

The calculations are based on the latest national income numbers released on Friday, which show GDP at current prices marginally lower than that assumed in the budget.

The total spending for the year was a massive Rs 1.5 lakh crore less than initially budgeted, marking one of the sharpest compressing in recent times.

Total spending for the year is pegged at Rs 16.45 lakh crore against revised estimate of Rs 16.8 lakh crore and Rs 17.95 lakh crore. The government was forced to curtail expenditure because of sharply lower tax revenues and shortfall in disinvestment receipts. The overall receipts – tax, non-debt capital receipts and non-tax revenues – was Rs 1.2 lakh crore lower than budgeted.

The bulk of the cut was in the plan spending, which was Rs 1.21 lakh crore less than budgeted Rs 5.75 lakh crore.