Present Fiscal Situation

IAS Prelims 2023

Indian Government is committed to promoting and strengthening inclusive and sustainable development by ensuring proper and effective utilization of funds provided in the Annual Budget without compromising fiscal consolidation.

As a result of sound prudent policies formulated during 2015-16, the fiscal deficit at the end of November 2015 is Rs. 4.83 lakh crores or 87% of the Budget Estimate for this fiscal.

current affairsThe fiscal deficit i.e. the gap between expenditure and revenue, for the entire current fiscal year has been pegged at Rs 5.55 lakh crore (3.9% of GDP).

The present fiscal situation is an improvement over the previous year when the fiscal deficit was then 98.9% of Budget Estimates 2014-15. In absolute terms, there is a decrease of Rs. 41, 611 crore over November 2014 figure.

Similarly, the Effective Revenue Deficit (revenue deficit net of grants for creation of capital assets) which is Rs.2,64,404 crores in November 2015 has shown a significant decrease of 20 % (Rs. 65,087 crores) over November 2014.

As regards expenditure, against the Budget Estimates of Rs. 1,35,257 crores for Plan Expenditure for creation of Capital assets, the Government of India has already incurred Rs. 97,788 crores (72% of BE) as compared to Rs. 62,146 crores (51% of BE) in the corresponding period of last year.

Total expenditure also increased from 60% of BE in November, 2014 to 64% in November, 2015.