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Fiscal deficit to be lower as GDP poised for 7% growth: NCAER
New Delhi, Nov 02: The government may be able to check fiscal deficit within 5.4 per cent of GDP as against 5.6 per cent budgeted for 2003-04, backed by a robust 7.13 per cent economic growth, according to National Council for Applied Economic Research (NCAER).
New Delhi, Nov 02: The government may be able to check fiscal deficit within 5.4 per cent of GDP as against 5.6 per cent budgeted for 2003-04, backed by a robust 7.13 per cent economic growth, according to National Council for Applied Economic Research (NCAER).
"Government finances may improve slightly in terms of the ratio of GDP," NCAER said in a report.
The economic think-tank expects the fiscal deficit to be at Rs 1,45,466 crore or 5.4 per cent of GDP "On average, fiscal deficit is expected to grow by 11.32 per cent during 2003-08. But, due to higher GDP growth, average fiscal deficit may decline to 5.3 per cent during 2003-08, compared to 5.9 per cent in 2002-03," it said.
NCAER expects government spending to be at 16.3 per cent of GDP during this fiscal compared to 16.4 per cent in 2002-03. The spendings would, however, go up to 16.7 per cent during 2003-08.
This is based on the assumption that GDP growth, which has been estimated to be 7.13 per cent this fiscal, would go down in the coming years and average 7.05 per cent during 2003-08.
Bureau Report
The economic think-tank expects the fiscal deficit to be at Rs 1,45,466 crore or 5.4 per cent of GDP "On average, fiscal deficit is expected to grow by 11.32 per cent during 2003-08. But, due to higher GDP growth, average fiscal deficit may decline to 5.3 per cent during 2003-08, compared to 5.9 per cent in 2002-03," it said.
NCAER expects government spending to be at 16.3 per cent of GDP during this fiscal compared to 16.4 per cent in 2002-03. The spendings would, however, go up to 16.7 per cent during 2003-08.
This is based on the assumption that GDP growth, which has been estimated to be 7.13 per cent this fiscal, would go down in the coming years and average 7.05 per cent during 2003-08.
Bureau Report