Lok Sabha Question No. 1114 (UNSTARRED), answered on 2017-07-21
Subject: Fiscal Deficit to GDP
Ministry: FINANCE
Asked by: KINJARAPU RAM MOHAN NAIDU

## Government of India Ministry of Finance Department of Economic Affairs

## LOK SABHA

UNSTARRED QUESTION NO. 1114

To be Answered on Friday the 21 st  July 2017/ Ashadha 30, 1939 (Saka)

## FISCAL DEFICIT TO GDP

## 1114.   SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister of FINANCE be pleased to state:

- (a) the details of fiscal deficit  to Gross Domestic Products (GDP) along with sector-wise subsidy outgo during the last three financial years;
- (b) whether the Government proposes to rationalise, fine tune and reduce the subsidy and if so, the details thereof along with the likely sectors/schemes where the subsidy is proposed to be cut;
- (c) whether the States/UTs have approached the Union Government for financial package/debt waiver to reduce their fiscal deficit and if so, the details thereof; and
- (d) the action taken by the Government to contain fiscal deficit?

## A N S W E R

## MINISTER OF STATE FOR FINANCE (SHRI ARJUN RAM MEGHWAL)

- (a): Details of fiscal deficit as a percentage of Gross Domestic Product (GDP) along with subsidy outgo on major subsidies during the last three financial years are as under:
- (b):  The  Government  continuously  strives  to  rationalize  the  subsidy  regime  in  major  subsidies  like fertilizer,  food  and  petroleum to better target it to the needy beneficiaries. Various reform measures have also been taken in context of subsidies without causing any hardship to genuine needy people.
- (c):  The  State  Government  of  Andhra  Pradesh  has  recently  requested  that  the  liability  of  Externally Aided  Projects  (EAPs)  Loans  shall  be  taken  out  from  the  books  of  accounts  of  the  Government  of Andhra Pradesh so that it will not form part of the States FRBM limit.  The Government of Andhra Pradesh has been informed that there will be no change in the mechanism of transfer of EAP loans, i.e. loan will be transferred on back to back basis on the same terms and conditions as are attached to the loan  by  the  lending  agency.    Hence,  EAP  loans,  like  any  other  borrowings  by  the  State,  shall  be considered within the Fiscal Deficit limit of the State.
- (d):  The  Government  has  been  taking  legal,  administrative  and  technological  measures  to  mobilize higher  amount  of  resources  from  both  tax  and  non-tax  revenue  along  with  rationalization  of expenditure, including through subsidy reforms etc.

| Financial Year   | Fiscal Deficit (% of GDP)   | Outgo on major subsidies (Rs. in crore)   | Outgo on major subsidies (Rs. in crore)   | Outgo on major subsidies (Rs. in crore)   |
|------------------|-----------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
|                  |                             | Food Subsidy                              | Petroleum Subsidy                         | Fertilizer Subsidy                        |
| 2016-17 (RE)     | 3.5                         | 1,35,173                                  | 27,532                                    | 70,000                                    |
| 2015-16          | 3.9                         | 1,39,419                                  | 29,999                                    | 72,415                                    |
| 2014-15          | 4.1                         | 1,17,671                                  | 60,269                                    | 71,090                                    |

RE: Revised Estimates

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