Indian Economy: Growth -2

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<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Fiscal deficit at Rs 28,406 cr in April </b>
Pioneer - Agencies/ New Delhi
With Finance Minister P Chidambaram aiming to rein in fiscal deficit below 4.1 per cent of GDP in 2005-06, North Block has stepped up efforts and contained the fiscal gap at Rs 28,406 crore in April.

The fiscal deficit in the first month as a percentage of the budget target has improved to 18.8 per cent in 2005-06 from 19.1 per cent during 2004-05.

However, in absolute terms the deficit was at Rs 28,406 crore in April 2005, which is 9.3 per cent higher than Rs 25,998 crore in April 2004, as per figures released by Controller General of Accounts.

The fiscal prudence shown in the first month is despite the fact that Centre's revenue and non-debt capital receipts were lower at Rs 1,850 crore in April this year compared to Rs 4,279 crore in April 2004.

While revenue receipts was higher at Rs 1,717 crore in April 2005 compared to Rs 823 crore a year ago, non-tax capital receipts declined sharply to Rs 133 crore from Rs 3,456 crore in April last year.

The lower receipts is reflected in widening of revenue deficit to Rs 27,016 crore in the first month of 2005-06 compared to Rs 23,218 crore a year ago.
 
However, Centre has been able to squeeze its spendings to Rs 30,256 crore in the first month of 2005-06, which is marginally lower than Rs 30,277 crore a year ago.

Fiscal deficit has been budgeted at Rs 1,51,144 crore or 4.5 per cent of GDP for 2005-06 compared to Rs 1,36,452 crore (4.3 per cent) last fiscal.

Since the fiscal deficit actually came down to 4.1 per cent last fiscal, Chidambaram now aims to further lower it in 2005-06. 
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