Fiscal deficit may cross 4.8% of GDP in ’04: ICRA

Credit rating agency ICRA today warned that the fiscal deficit will cross 4.8 per cent of the GDP during 2003-04, as was projected by the government in the interim budget.

The targeted fiscal deficit was significantly lower, mainly due to the higher GDP growth projection of 8.7 per cent. ‘‘However, given the current trends, GDP growth in 2003-04 is likely to be in the range of 7.5-8 per cent, which is lower than the projected 8.7 per cent,’’ ICRA said, adding that this possibly implies a higher fiscal deficit as compared to 4.8 per cent during 2003-04.

In his interim budget, Finance Minister Jaswant Singh had pegged fiscal deficit at 4.8 per cent of GDP in 2003-04, compared to an earlier estimate of 5.6 per cent. In its report on ‘‘sectoral perspectives’’, ICRA attributed the decline in the Centre’s deficit to the surge in non-debt receipts, especially recoveries of loans from states.