Fiscal deficit pegged at 5.5 per cent

Fiscal deficit pegged at 5.5 per cent

ROLLING TARGETS FOR 2011-12 AND 2012-13 TO BE 4.8 AND 4.1 PER CENT

AN INCREASE OF 8.6 PER CENT ENVISAGED IN THE TOTAL EXPENDITURE IN 2010-11

GENERAL BUDGET 2010-11

Returning on the path of fiscal consolidation, the fiscal deficit is proposed to be pegged at 5.5 per cent in the General Budget 2010-11 against a fiscal deficit of 7.8 per cent in 2008-09 and 6.9 per cent as per the Revised Estimates for 2009-10. At 5.5 per cent of GDP the fiscal deficit in 2010-11 works out to Rs. 3,81,408 crore. The Medium Term Fiscal Policy statement presented by the Finance Minister, Shri Pranab Mukherjee in Lok Sabha today has fixed the rolling targets for fiscal deficit at 4.8 per cent and 4.1 per cent for 2011-12 and 2012-13 respectively.

The actual net market borrowing of the Government in 2010-11 is estimated to be of the order of Rs. 3,45,010 crore. With this, the Finance Minister expressed hope, that there would be enough space to meet the credit needs of the private sector. The borrowing programme will be planned in consultation with the Reserve Bank of India, said the Finance Minister.

The total expenditure is proposed to be Rs. 11,08,749 crore in the Budget Estimates (BE) for 2010-11, which is an increase of 8.6 per cent over the total expenditure in Budget Estimates in 2009-10. The Plan and Non Plan expenditures in BE 2010-11 are estimated at Rs. 3,73,092 crore and Rs. 7,35,657 crore, respectively. While there is a 15 per cent increase in Plan expenditure, the increase in Non Plan expenditure is only 6 per cent over the BE of previous year. Presenting the General Budget 2010-11, Shri Pranab Mukherjee said that at this level the total Plan expenditure would be very closed to 100 per cent of the expenditure envisaged in the Eleventh Five Year Plan.

The Gross Tax Receipts are estimated at Rs. 7,46,651 crore. The Non Tax revenue Receipts are estimated at Rs. 1,48,118 crore. The net tax revenue to the Centre as well as the expenditure provisions in 2010-11 have been estimated with reference to the recommendations of the Thirteenth Finance Commission.