HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  


Search:



The Web

Rediff








Business
Portfolio Tracker
Business News
Specials
Columns
Market Report
Mutual Funds
Interviews
Tutorials
Message Board
Stock Talk



Home > Business > Business Headline > Report

Fiscal deficit target will not be met: NCAER

BS Economy Bureau in New Delhi | February 10, 2003 13:47 IST

The government may fail to rein in the fiscal deficit despite the focus on the Fiscal Responsibility and Budget Management Bill, the National Council of Applied Economic Research has said.

The latest issue of Macrotrack, the NCAER's monthly report, says the lack of a clear fiscal strategy combined with the current mismatch between Budget estimates and actual outturns are responsible for the situation.

Among other things, the FRBM Bill aims at eliminating the revenue deficit and achieving an overall fiscal deficit target of 2 per cent of GDP between April 2001 and March 2006.

However, even at the middle of the specified period, the targets look distant. With Lok Sabha elections slated for 2004, the predominant consideration behind Budget 2003-04 would be political prudence rather than fiscal foresight, signaling yet another year of lost opportunity, the report said.

Over the years, not only have the fiscal deficit figures for both the Centre and states worsened, variations in the actual outcomes from the budgeted estimates have increased.

Unrealistic targets in the absence of implementation of policy changes, an inability to adequately restructure the tax system and collection machinery are responsible for the sorry state of affairs.

The trend of basing Budget estimates on expenditure restriction without any subsequent effort to exercise fiscal discipline has also contributed. Additional demands placed during the year have also added to slippages.

"Indeed, it would appear that the absence of a system for medium to long term fiscal policy planning at the finance ministry lies at the corner of the observed 'slippages in fiscal markmanship'", the report goes on to say.


Powered by



Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor



Related Stories


The short and the long of Budget

What I couldn't tell the FM








HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  
© 2003 rediff.com India Limited. All Rights Reserved.