Indian economy - Revenue earnings, expenditure and deficit

The enactment of FRBM Act, 2003 has provided the required direction to the fiscal reforms in the country. Revenue deficit shows healthy declining trend – revenue deficit as percentage of GDP is estimated to decline to 1.5% of GDP in 2007-08 from a level of 3.6% in 2003-04 and as a percentage of total fiscal deficits is expected to be 47.4% down from the levels of 79.7% in 2003-04, implying better utilization of borrowed resources for asset creation. Higher levels of tax revenues have played a major role in increased revenue receipts and thus reducing the deficits over the years.(Click on the next button to see the trends).