The government's fiscal deficit is budgeted at Rs 1,37,407 crore (Rs 1374.07 billion) which is over Rs 5,300 crore (Rs 53 billion) more than the revised estimate of the previous regime, mainly due to higher spending and despite putting in place the Fiscal Responsibility and Budget Management Act.
Though in absolute terms the fiscal deficit is on higher side, notwithstanding a 25 per cent rise in tax mop up, Finance Minister P Chidambaram, while presenting the Budget for 2004-05 said he expects the deficit as a proportion of GDP to be lower at 4.4 per cent in FY05 as compared to the revised estimate of 4.8 per cent a year ago.
However, revenue deficit has been budgeted to fall to Rs 76,171 crore (Rs 761.71 billion) this year, about 24 per cent lower than the revised estimate of Rs 99,860 crore (Rs 998.6 billion) in 2003-04.
With an estimated rise in expenditure mainly on revenue account, the Centre's total expenditure for 2004-05 is budgeted to go up to Rs 4,77,829 crore (Rs 4778.29 billion) as against Rs 4,74,255 crore (Rs 4742.55 billion).
The UPA government's Budget estimates Plan expenditure to go up, while non-Plan expenditure to fall despite increase in interest liabilities during this year.
Plan expenditure has been budgeted at Rs 1,45,590 crore (Rs 1455.9 billion) during this year as compared to the revised estimate of Rs 1,21,507 crore (Rs 1215.07 billion) in the previous year.
While non-plan expenses are slated to fall to Rs 3,32,239 crore (Rs 3322.39 billion) this fiscal against the revised estimate of Rs 3,52,478 crore (Rs 3524.78 billion) in 2003-04.
The government's total revenue expenditure is slated to go up by over Rs 22,600 crore (Rs 226 billion) to Rs 3,85,493 crore (Rs 3854.93 billion) this fiscal.
Centre's borrowings are expected to go up to Rs 1,37,407 crore (Rs 1374.07 billion) this year as compared to revised estimate of Rs 1,32,103 crore (Rs 1321.03 billion) a year ago.
Interest payment liabilities have been budgeted at Rs 1,29,500 crore (Rs 1295 billion), higher than the revised estimate of Rs 1,24,555 crore (Rs 1245.55 billion) during 2003-04.
Tax revenues have been budgeted at Rs 2,33,906 crore (Rs 2339.06 billion) in this year, about 25 per cent higher than the revised estimate of Rs 1,87,539 crore (Rs 1875.39 billion) a year ago.
However, non-tax revenue are expected to marginally fall to Rs 75,416 crore (Rs 754.16 billion) this year as compared to the revised estimate of Rs 75,488 crore (Rs 754.88 billion) in 2003-04.
The government's capital expenditure have been budgeted at Rs 92,336 crore (Rs 923.36 billion), which is lower than the revised estimate of Rs 1,11,368 crore (Rs 1113.68 billion) during 2003-04.
The Union Budget has estimated a higher primary deficit, which is fiscal deficit excluding interest payments of Rs 7,907 crore (Rs 79.07 billion) as compared to Rs 7,548 crore (Rs 75.48 billion) a year ago.