Despite an ambitious target, the Centre managed to contain its fiscal deficit at 4 per cent of the GDP or Rs 5,01,880 crore in 2014-15, overcoming a shortfall in tax collections.
This is marginally better than the target of 4.1 per cent of the GDP for the fiscal deficit in 2014-15 and amounts to 98 per cent of the projected figure in revised estimate.
The revenue deficit was also contained at 2.8 per cent of the GDP or Rs 3,58,306 crore, partially lower than the targetted 2.9 per cent of the GDP last fiscal.
The finance ministry said this was possible through prudent fiscal policies adding, “The government is firmly committed to path of fiscal consolidation and this is a step forward.”
The fiscal deficit target was set at 4.1 per cent by the former UPA government, but finance minister Arun Jaitley had said he was taking it as a “challenge” to meet this ambitious and “daunting target” set up by his predecessor P Chidambaram.
For 2015-16, Jaitley has aimed to contain the fiscal deficit at 3.9 per cent of the GDP and the revenue deficit at 2.8 per cent of the GDP in the current fiscal.
According to the data release by the finance ministry on Sunday, gross tax collections grew 9 per cent in 2014-15 and stood at Rs 12,45,037 crore, partially lower than the revised estimate of Rs 12,51,391 crore.
Meanwhile, while non-tax revenue amounted to Rs 1,96,959 crore or 90 per cent of revised estimates and non-debt capital receipts including proceeds from disinvestment amounted to Rs 43,439 crore, marking an increase of 4 per cent from the previous fiscal’s collection of Rs 41,865 crore.
Plan expenditure at the end of 2014-15 stood at Rs 4,35,621 crore while non-plan expenditure during the same year has been Rs 11,91,140 crore (99.8 per cent of RE), the statement said.Devolution of tax collections to states at the end of 2014-15 was Rs 3,37,808 crore, which is higher by Rs 19,578 crore over the previous financial year.
Devolution of tax collections to states at the end of 2014-15 was Rs 3,37,808 crore, which is higher by Rs 19,578 crore over the previous financial year.
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