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21
December 2017
 |
Heritagegold (The Total
Investment & Insurance Solutions)
The
fiscal deficit for FY17 was merely Rs3,525 crore more than what the government
has given in its revised estimates in the union budget for FY17-18. Hence,
fiscal deficit as % of GDP in FY17 is 3.54% compared to 3.52% estimated by the
government in the budget, says the financial audit report of the
Comptroller and Auditor General (CAG) of Union Government, authored by Dr.
Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India (SBI).
“We
did analyse the fiscal deficit numbers provided by CAG and the government for
the past 15 years. Before FY05-06 the audited figures always remained within
the budgeted figure. This trend reversed after FY05-06 and the differences
between both numbers bulged significantly. The trend was correcting since
FY11-12 but for FY15-16. For FY16-17, the CAG numbers and budget (revised)
numbers are not much different. This indicates that there has been a
significant improvement in fiscal architecture in addition to the fiscal
consolidation that the government has been doing,” notes the report.
In
the earlier years (particularly in FY07-09), the divergence between CAG figures
and the budget is due to the lack of transparency in the disclosure of receipts
and expenditures. For example, during any year, expenditures that needed to
fall under major heads were classified under minor heads. Another aspect of
opaqueness is the high degree of aggregation. This aspect has been brought
forth by the 12th Finance Commission which has specified eight sets of separate
statements along with the budget.The Total
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