Kohima: Nagaland gross fiscal deficit soared from Rs 1 Billion in 1991-92 to Rs 11.6 Billion in the fiscal year (FY) 2015-2016 as per the data released by Reserve Bank of India (RBI) on Saturday.
According to RBI, the Handbook of Statistics first released in 2016, it is the highest fiscal deficit in 16 years of Nagaland state since 1991 and State had only one surplus fiscal year in 2003-04.
However, as per the advance budget estimate, the fiscal deficit is expected to decrease to Rs 5.4 billion (Rs 5,400 billion) in FY2016-17. Overall, the second edition of RBI’s statistical publication titled ‘Handbook of Statistics on States 2016-17’ reported a hike in the gross fiscal deficit of all the states of India, surging from a Rs 187.9 billion in FY 1991 to Rs 4,495.2 billion in FY2016.
The State with the highest deficit was Rajasthan at Rs 673.5 billion followed by Uttar Pradesh at Rs 643.2 billion. The Gross Fiscal Deficit (GFD) shows the excess of total expenditure including loans net of recovery over revenue receipts (including external grants) and non-debt capital receipts.
The rise in fiscal deficit is also indicative of two deteriorating situation in the economy growing revenue deficit as well outstanding liabilities. (UNI)
