competition success magazine published this article page no 16 in spite of the well-placed frbma-2003 recommended fiscal deficit of 3.0 per cent of gdp is still a target even after 20 years. it may be due to a lack of seriousness or various macroeconomic disturbances and economic instabilities. however to reduce its ill effects government has found an alternative of higher capital expenditure in recent years. to lessen the negative impact of the fiscal deficit the government has planned for higher capital expenditure of rs 10 lakh crore which is 33 per cent higher than last years figure and 3.3 per cent of gdp. this will be almost three times the outlay in 2019-20. the overall effective capital expenditure of the centre is budgeted at rs 13.7 lakh crore which will be 4.5 per cent of gdp. in this budget more fiscal freedom has been given to all the states and accordingly each state has been allowed to have the leverage of a fiscal deficit of 3.5 percent of their sgdp competition success magazine subscription.
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