Fiscal Deficit to be Pegged at 4.1% and the Revenue Deficit at 3%

The Union Finance Minister, Shri P. Chidambaram here today presented the Interim Budget 2014-15 that shows an estimated plan expenditure of Rs. 5,55,322 crore and non-plan expenditure of Rs. 12,07,892 crore. He said that the current financial year will end on a satisfactory note with the fiscal deficit at 4.6% and the revenue deficit at 3.3%. Shri P. Chidambaram said that emboldened by the progress made, he has budgeted for the receipts and expenditure in 2014-15 that will leave a fiscal deficit of 4.1% and revenue deficit of 3%. The Finance Minister said the fiscal deficit during 2014-15 will be below the target set by the fiscal consolidation path.

Fiscal deficit target set below consolidation path, with revenue deficit reduced under interim budget measures. The Interim Budget for 2014-15 sets estimated plan expenditure and non plan expenditure and fixes macrofiscal targets, budgeting for a fiscal deficit of 4.1% and a revenue deficit of 3%, while noting the current year's expected fiscal deficit of 4.6% and revenue deficit of 3.3%, and stating the 2014-15 deficit estimates remain below the fiscal consolidation path.