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IMF questions revenue, growth targets

BS Economy Bureau

The International Monetary Fund team, which concluded its onsite assessment of the Indian economy, has raised questions marks over the revenue and growth estimates for 2001-02.

The team led by IMF Executive Director Vijay Kelkar, which met senior finance ministry officials in Delhi and Reserve Bank of India officials in Mumbai in the last week or 10 days has said that the government's projections were not up to the mark.

IMF undertakes an annual inspection of its member countries' financial statements under Article IV of its agreement with the countries.

Having completed the annual inspection of India's economic data, the IMF board would take on record the assessment in June.

According to finance ministry sources, the periodic revision of the gross domestic product growth targets and sharp downward revision of the total revenue receipts were questioned by the IMF team.

Sources said the team pointed to the historical evidence of actual revenue realisation falling short of not only budgeted figures but also the revised estimates.

For 2001-02, the finance ministry revised its gross tax receipts by almost Rs 300 billion from Rs 2,266.49 billion to Rs 1,966.93 billion.

Sources said the revenue department would find it difficult to meet even the revised targets for the last financial year.

The budgeted fiscal deficit at 4.7 per cent of the GDP was also revised to 5.7 per cent while the budget for 2002-03 was presented.

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