The fiscal deficit of the Centre touched 3.38 per cent of the gross domestic product at the end of December 2002.

The cumulative revenue and expenditure of the Centre, released by the Controller General of Accounts, shows that in absolute terms the fiscal deficit for April-December 2002 stood at Rs 86,269 crore (Rs 862.69 billion) against the Budget target of Rs 1,35,524 crore (Rs 1,355.24 billion). In the same period of April-December 2001, the fiscal deficit was at 3.9 per cent of the GDP.

The revenue deficit, which measures the difference between the current revenue and expenditure, was only at 71 per cent of the Budget target of Rs 95,377 crore (Rs 953.77 billion), compared with 84.4 per cent recorded in the first nine months of 2001.

The primary deficit, which measures the deficit minus the interest liability, also came down to 70 per cent during April-December 2002, as against 424.5 per cent in the comparable period of 2001.

In absolute figures, the revenue deficit was at Rs 68,018 crore (Rs 680.18 billion), while the primary deficit was at Rs 12,759 crore (Rs 127.59 billion).

The improved performance of the Centre this fiscal is due to the higher revenue growth of Rs 150,488 crore (Rs 1,504.88 billion), including Rs 1,03,844 crore (Rs 1,038.44 billion) from net tax collection.

The revenue growth is also higher at 61.4 per cent of the Budget estimates, as against 57.3 per cent in 2001-02.

Divestment receipts at Rs 3,122 crore (Rs 31.22 billion) pushed up the total receipts of the government to Rs 1,69,228 crore (Rs 1,692.28 billion), almost 62 per cent of the Budgeted amount.

However, there was a sharp deceleration in the Plan expenditure, which was 56.8 per cent of the annual target at Rs 64,472 crore (Rs 644.72 billion) in 2002-03, compared with 65 per cent in the last fiscal.

Non-Plan expenditure growth was at 64.4, as against 62.4 per cent in 2001-02.

The total expenditure stood at Rs 2,55,497 crore (Rs 2,554.97 billion) or 62.3 per cent of the Budget target, the same as last fiscal.