Indian Government contains fiscal deficit at 4%; beats its own target

[sree45]

Bettering its own financial targets, the government has contained the fiscal deficit at 4% of GDP for 2014-15 at Rs 5,01,880 crore.

The revenue deficit has also been confined to 2.8%, beating the budget target of 2.9% for the last fiscal, the Finance Ministrysaid in a statement today.

The gross tax collection registered a growth of 9% in 2014-15 and stood at Rs 12,45,037 crore.

The fiscal deficit target was set at 4.1% by the the 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.

Fiscal deficit, the gap between the government's expenditure and revenue, is lower than the downwardly revised estimate of 4.1% provided by the Modi government's first full Budget announced in February.

"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% of the projected figure in Revised Estimate for 2014-15. Fiscal deficit as a percentage of GDP is 4.0% as against the RE of 4.1%," the Finance Ministry said.

"Revenue deficit at the end of 2014-15 is Rs 3,58,306 crore which is 99% of the projected figure in the RE 2014-15 and is 2.8% of the GDP as against the RE of 2.9%," the statement added.

Revenue deficit refers to the shortfall in total government revenue realisation from the targeted figure.

The Finance Ministry further said that the government is "firmly committed to the path of fiscal consolidation and this is a step forward".




Government contains fiscal deficit at 4%; beats its own target | Latest News & Updates at Daily News & Analysis

 

[Quibbler]

holy crAp!!

 

[uparyupari]

This is just Year ONE of Modi Sarkar

 

[GURU DUTT]

good start but still a long way to go but modi's principal is to push for increase in income than saving from lowering the spendings ...good luck arun ji and modi ji ... Jai Maa Bharti

 

[WAR-rior]

This is just Year ONE of Modi Sarkar

Dont give this to Modi. It's all coz of oil prices.

 

[uparyupari]

Dont give this to Modi. It's all coz of oil prices.

LOL. Fiscal prudence comes from good intentions, not oil prices.

Fiscal Deficit comes from spending more than you earn. Not oil prices, just common sense.

 

[deckingraj]

Dont give this to Modi. It's all coz of oil prices.

i was expecting this type of comment however do you know how difficult this target of 4% was?? no doubt oil prices played a role however that is not the crux of the story...

 

[magudi]

i was expecting this type of comment however do you know how difficult this target of 4% was?? no doubt oil prices played a role however that is not the crux of the story...

Anything good happens - thanks to oil prices ,anything bad happens - will modi answer ?

 

[WAR-rior]

LOL. Fiscal prudence comes from good intentions, not oil prices.

Fiscal Deficit comes from spending more than you earn. Not oil prices, just common sense.

Dude. The decrease in deficit has come coz of increased earnings against the spending. And increased earnings has come coz of decreased import bills which is coz of low oil prices.

A simple gyan for you, don't leave economic analysis to half. Go more into the parameters or you might lose lot of marks. Personal experiences.

 

[uparyupari]

Dude. The decrease in deficit has come coz of increased earnings against the spending. And increased earnings has come coz of decreased import bills which is coz of low oil prices.

A simple gyan for you, don't leave economic analysis to half. Go more into the parameters or you might lose lot of marks. Personal experiences.

LOL..... kindly spare me from your childish gyan of economics. Pick someone you own size.

I am not really interested in educating you, but just so that you stop spreading ignorance, here goes,

Planned expenditure is what determines spending. Before planning the spend, Tax collections is estimated. Avenues of increasing the tax base and collections are looked into. Budget spend is allocated accordingly. That is called prudent fiscal planing.

Tax collection go up due to better economy, due to positive sentiments and availability of liquidity, by foreign FDI, by collection of BLACK MONEY and clamping down on tax evaders, by HONEST sale of coal mines and Spectrum Sales.

Take you own advice and understand more parameters than "oil" ...... not that you have shown any propensity for analysis.

 

[WAR-rior]

i was expecting this type of comment however do you know how difficult this target of 4% was?? no doubt oil prices played a role however that is not the crux of the story...

That's exactly the crux. NDA was pissing in pants a yr back when they formed the govt and UPA was over challenging them to achieve 4.1%. Even Jaitley knew in normal circumstances it was impossible no matter how much investments you do in one year. Today we see the impossible happening only coz of one factor. Oil.

 

[deckingraj]

That's exactly the crux. NDA was pissing in pants a yr back when they formed the govt and UPA was over challenging them to achieve 4.1%. Even Jaitley knew in normal circumstances it was impossible no matter how much investments you do in one year. Today we see the impossible happening only coz of one factor. Oil.

well you are again at it?? Dude Jaitley was pissing in pants about 4.1% because it was a very challenging and daunting task..no doubt about it, however that was still the target they accepted..no?? are you saying that during govt. formation they knew that oil prices will crash?? Giving zero credit to fiscal consolidation doesn't sound smart either to me...

 

[magudi]

Indirect tax collections jumped 46.2% in April - The Economic Times

 

[WAR-rior]

LOL..... kindly spare me from your childish gyan of economics. Pick someone you own size.

I am not really interested in educating you, but just so that you stop spreading ignorance, here goes,

Planned expenditure is what determines spending. Before planning the spend, Tax collections is estimated. Avenues of increasing the tax base and collections are looked into. Budget spend is allocated accordingly. That is called prudent fiscal planing.

Tax collection go up due to better economy, due to positive sentiments and availability of liquidity, by foreign FDI, by collection of BLACK MONEY and clamping down on tax evaders, by HONEST sale of coal mines and Spectrum Sales.

Take you own advice and understand more parameters than "oil" ...... not that you have shown any propensity for analysis.

OK. Mr I know al. Only Temme one thing. Will the current target been achieved if oil prices have not lowered to half the rate over one year. Say yes or no.

 

[uparyupari]

That's exactly the crux. NDA was pissing in pants a yr back when they formed the govt and UPA was over challenging them to achieve 4.1%. Even Jaitley knew in normal circumstances it was impossible no matter how much investments you do in one year. Today we see the impossible happening only coz of one factor. Oil.

For you info, the target was set at 3.9 % and it was revised to 4.1%.

Modi was blamed for resetting the target, now that he has over achieved; its because of OIL

Indirect tax collections jumped 46.2% in April - The Economic Times

Nah .... its all because of OIL

OK. Mr I know al. Only Temme one thing. Will the current target been achieved if oil prices have not lowered to half the rate over one year. Say yes or no.

Yes.