(a) Whether the World Bank has expressed serious concern
over India`s fiscal deficit;
(b) if so, the details of the contents of the annual
global development finance report;
(c) the details of fiscal deficit of the States;
(c) the details of the current account deficit of country;
and
(d) the steps taken by the Government to improve fiscal
deficit?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a) to (e) A Statement is attached.
Statement referred to in reply to Lok Sabha Unstarred
Question No. 3161 by Shri A. Venkatesh Naik for answer
on 10th August, 2001.
(a) & (b) The Global Development Finance Report, 2000
published by the World Bank has drawn attention to recent
developments in South Asia during 1999. As regards India`s
fiscal deficit the Report has observed that `the budget
deficit of the Central Government (5-6 percent of GDP) is
likely to have well exceeded the Government`s target
(4.4 percent of GDP). The large fiscal overruns of the
States are also worrying.`
(b) As per the Reserve Bank of India, the Gross fiscal
deficit of all State Governments was Rs.90,092 crore in
2000-01(BE) compared with Rs.94,739 crore in 1999-2000(RE).
(c) The current account deficit, which was only about 1
per cent of GDP in 1999-2000, narrowed down to just 0.5
per cent of GDP in 2000-01. This is attributed to the
dynamic growth in exports, sustained buoyancy in
invisible receipts combined with the decline in growth
of non-oil imports.
(d) With a view to achieve fiscal consolidation, the
Budget for 2001-02 emphasises expenditure management
through the process of bringing about structural
changes in the composition of Central Government
expenditure, economy in non-plan revenue expenditure
while improving the quality of expenditure. To this
end the Budget contains a number of initiatives which
among others include restricting fresh recruitment to
one per cent of total civilian staff strength, user
charges for services provided by the government and
its agencies to be revised keeping in view the
increased cost of these services etc. Further, with a
view to reduce interest burden, most administered
interest rates were reduced by 1.5 per cent as of March
1,2001. Besides, the Fiscal Responsibility and Budget
Management Bill, 2000 was introduced in Parliament in
December 2000. This Bill includes provisions relating
to ceilings on debt, deficit and borrowing.