Similarly, the economic growth rate for 2012-13 has been revised upwards to 5.1 percent, compared with 4.5 percent estimated earlier. These changes follow a revision in the base for calculating national accounts to 2011-12 from 2004-05.
The base year was last revised in January 2010.
"Real GDP or GDP at constant (2011-12) prices stands at Rs 92.8 lakh crore and Rs 99.2 lakh crore, respectively for the years 2012-13 and 2013-14, showing growth of 5.1 percent during 2012-13, and 6.9 percent during 2013-14," said a release.

The new series of national accounts with 2011-12 as base year for computing economic growth rate may provide some cushion to government struggling to meet fiscal deficit target this fiscal.

With the revision of base year, the size of economy is expected to bigger which in turn would help the government in keeping the fiscal deficit, computed as a proportion of the Gross Domestic Product (GDP), lower.  

The base year for computing national accounts is revised by the Statistics Ministry.

Prime Minister Narendra Modi-led government is committed to restricting the fiscal deficit at 4.1 per cent of the GDP during the current fiscal, the lowest level in seven years, and has taken several steps towards it.

The government had put in place a fiscal consolidation roadmap as per which the fiscal deficit has to be brought down to 3 percent of the GDP by 2016-17.

To reduce the fiscal deficit to seven-year low, it has announced a slew of austerity measures aimed at cutting non-plan spending by 10 percent.

As per the data released by Controller General of Accounts on December 31, India's fiscal deficit during the April-November period was 98.9 percent of the 2014-15 estimate, primarily on account of subdued revenue realisation.

Fiscal deficit - the gap between government expenditure and revenue - during the same period last year was 93.9 percent of that year's target.

Latest News  from Business News Desk