New Delhi: Finance Minister Pranab Mukherjee on Friday projected the central government's fiscal deficit to narrow to 5.1 pc of gross domestic product in the next financial year starting Apr 1 from the revised estimate of 5.9 pc for 2011-12 (Apr-Mar).
In absolute terms, fiscal deficit for 2012-13 is projected at 5.136 trln rupees, down 1.6% from revised estimate of 5.220 trln rupees in current year.
A poll had projected the fiscal deficit in 2012-13 at 5.1 pc.
For the current year, the fiscal deficit was revised to 5.9 pc of GDP from Budget estimate of 4.6 pc, mainly on account of higher subsidies and lower tax and divestment receipts.
In absolute terms, the fiscal gap in 2011-12 is likely to be 1.092 trln rupees higher than the Budget estimate of 4.128 trln rupees.

Unveiling the Budget, Mukherjee projected gross tax collections in 2012-13 to be 10.776 trln rupees, up 19.5 pc from the revised estimate of 9.017 trln rupees in the current year.
The government's net tax collection in 2012-13 is pegged at 7.711 trln rupees, up 20.1 pc on year. Net tax is gross collection minus devolvement to states and surcharge for financing the National Calamity Contingency Fund. The Centre devolves 29-30 pc of the total tax mop-up to states as their share in central taxes.
Non-tax revenue, such as dividend receipts from state-owned companies and interest receipts on loans to state governments, is projected to increase 32.0 pc on year to 1.646 trln rupees, mainly on account of targeted 400-bln-rupee revenue from spectrum auction.
The government is aiming for dividends and surplus of 501.53 bln rupees from public sector companies in the next financial year, nearly unchanged on year.
Total receipts of the government, excluding debt, are projected at 9.773 trln rupees in 2012-13, up 22.7 pc from 7.967 trln rupees this year.
The government's expenditure is projected at 14.909 trln rupees, up 13.1 pc from 13.187 trln rupees in 2011-12.
The Budget projected the revenue deficit at 3.4 pc of GDP or 3.504 trln rupees for next financial year.
The Budget pegged effective revenue gap at 1.858 trln rupees or 1.8 pc of GDP in 2012-13 compared with an effective revenue gap of 2.9 pc or 2.574 trln rupees for the current financial year.
Effective revenue deficit is calculated by excluding grants for creation of capital assets.
The following table details the government's balance sheet as per the Budget proposals (in bln rupees)