In FY16 Center Met 3.9% Fiscal Deficit Target [ Current Affairs ]
In FY16 the Centre achieved the fiscal deficit target of 3.9 % or Rs. 5.32 lakh of GDP according to the Controller General of Accounts report; it is slightly lower than the revised estimate (RE) of Rs. 5.35 lakh crore.
- The government had used number of measures such as series of hikes in excise duty on petrol and diesel, to boost revenue and met a low nominal GDP growth and shortfall in disinvestment revenue.
- The tax revenue rose at Rs. 9.44 lakh crore or 99.7 % of the RE in FY16. Total revenue rose at 12.4 lakh crore, or 99.2 % of the RE of Rs. 12.5 lakh crore after transfers to states.
- As per the CGA data 17.73 lakh crore or 99.3 % of the RE was the total expenditure in the last fiscal year.
- The Plan expenses needed to be cut from budget estimate (BE) level to meet deficit targets, the expenses was more than the budget estimate of Rs. 4.65 lakh crore essentially Rs. 5, 800 crore.
- In FY16 Plan capital spending has raised up to 50 % to Rs. 1.43 lakh crore compared to Rs. 96, 135 crore in the previous fiscal.
- In the last fiscal year the sharp increase in Plan capital spending has helped the economy grow up to 7.6 % from 7.2 % in the previous year.
- The GDP data has been individually released by the Central Statistics Office and gross fixed capital formation contracted 1.9 % in the January-March quarter as private savings remained tepid.
- The Centre’s fiscal shortfall the first month of FY17 around Rs. 1.37 lakh crore or 25.7 % of the full year target of Rs. 5.34 lakh crore as per the CGA data.
- Gross domestic product (GDP) is a financial measure of the value of all final goods and services produced in a yearly.
- GDP = C + I + G + (X - M)
- Nominal estimates of GDP are usually used to regulate the economic performance of a whole country or region.
- It is also used to make international comparisons.
- GDP is not a complete measure of economic activity.
- Published on: June 1, 2016