Government has beaten their own target of containing Fiscal deficit, gap between government's expenditure and revenue, at 3.99 per cent of GDP, lower than the downwardly revised estimate of 4.1 per cent provided in the government's first full Budget of FY15-16.
The Finance Ministry has stated that 'As a result of prudent policies and commitment to fiscal consolidation, the fiscal deficit at the end of 2014-15, stands at Rs 5,01,880 crore which is 98 per cent of the projected figure in Revised Estimate for 2014-15.'
The government has set the fiscal deficit target for the current fiscal at 3.9 per cent of the GDP or Rs 5,55,649 lakh crore with the assumption that the size of the economy at current prices would be Rs 141.08 lakh crore in 2015-16. As per the fiscal consolidation road map outlined in the Budget 2015-16, fiscal deficit is to be brought down to 3.9 per cent of GDP in the current fiscal, then to 3.5 per cent in 2016-17 and further to 3 per cent by 2017-18.
The fiscal deficit in the first month of 2015-16 was Rs 1.27 lakh crore or 23 percent of Budget Estimates for the whole financial year, compared to 21.4 percent of Budget Estimates in April last fiscal. The fiscal deficit for the whole fiscal has been pegged at Rs 5.55 lakh crore.
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