Government is committed to promoting and strengthening inclusive and sustainable development by ensuring proper and effective utilization of funds provided in the Annual Budget without compromising fiscal consolidation. As a result of sound prudent policies formulated during 2015-16, the fiscal deficit at the end of November 2015 is ₹ 4.83 lakh crores or 87% of the Budget Estimate for this fiscal. The fiscal deficit i.e. the gap between expenditure and revenue, for the entire current fiscal year has been pegged at ₹ 5.55 lakh crore (3.9% of GDP).

The present fiscal situation is an improvement over the previous year when the fiscal deficit was then 98.9% of Budget Estimates 2014-15. In absolute terms, there is a decrease of ₹ 41, 611 crore over November 2014 figure.

Similarly, the Effective Revenue Deficit (revenue deficit net of grants for creation of capital assets) which is ₹ 2,64,404 crores in November 2015 has shown a significant decrease of 20 % (Rs. 65,087 crores) over November 2014.

As regards expenditure, against the Budget Estimates of ₹ 1,35,257 crores for Plan Expenditure for creation of Capital assets, the Government of India has already incurred ₹ 97,788 crores (72% of BE) as compared to ₹ 62,146 crores (51% of BE) in the corresponding period of last year. Total expenditure also increased from 60% of BE in November, 2014 to 64% in November, 2015.

Government committed to Promoting and Strengthening inclusive and sustainable Development by ensuring proper and effective Utilization of Funds without compromising Fiscal Consolidation

Government is committed to promoting and strengthening inclusive and sustainable development by ensuring proper and effective utilization of funds provided in the Annual Budget without compromising fiscal consolidation. As a result of sound prudent policies formulated during 2015-16, the fiscal deficit at the end of November 2015 is ₹ 4.83 lakh crores or 87% of the Budget Estimate for this fiscal. The fiscal deficit i.e. the gap between expenditure and revenue, for the entire current fiscal year has been pegged at ₹ 5.55 lakh crore (3.9% of GDP).

The present fiscal situation is an improvement over the previous year when the fiscal deficit was then 98.9% of Budget Estimates 2014-15. In absolute terms, there is a decrease of ₹ 41, 611 crore over November 2014 figure.

Similarly, the Effective Revenue Deficit (revenue deficit net of grants for creation of capital assets) which is ₹ 2,64,404 crores in November 2015 has shown a significant decrease of 20 % (Rs. 65,087 crores) over November 2014.

As regards expenditure, against the Budget Estimates of ₹ 1,35,257 crores for Plan Expenditure for creation of Capital assets, the Government of India has already incurred ₹ 97,788 crores (72% of BE) as compared to ₹ 62,146 crores (51% of BE) in the corresponding period of last year. Total expenditure also increased from 60% of BE in November, 2014 to 64% in November, 2015.

Fiscal consolidation secured through improved budget execution and reduced effective revenue shortfall, strengthening inclusive development outcomes. Government commits to promoting inclusive and sustainable development while preserving fiscal consolidation by ensuring effective utilization of annual budget funds. Prudent 2015-16 policies improved the fiscal position by end-November 2015, reducing the fiscal deficit relative to the Budget Estimate and lowering the Effective Revenue Deficit. Plan Expenditure execution for capital asset creation rose to a higher share of the Budget Estimate than in the previous year, and total expenditure as a percentage of the Budget Estimate increased, indicating strengthened budget implementation and public expenditure management.