Fiscal deficit at the Centre, as a proportion of GDP, has declined steadily from 5.9 per cent in 2002-03, to 3.4 per cent in 2006-07, according to the Economic Survey 2007-08 presented in the Parliament by the finance minister, P Chidambaram.

The survey estimates that the deficit will further decline to 3.3 per cent in 2007-08.

Revenue deficit also declined from 4.4 per cent in 2002-03, to 1.9 per cent in 2006-07 and is estimated to decline further to 1.5 per cent in 2007-08.

Revenue deficit as a percentage of fiscal deficit has declined from 79.7% in 2003-04 to 56.3 per cent in 2006-07 and the situation is further expected to improve to 47.4 per cent in 2007-08. The forecast implies a progressively better utilization of borrowed resources towards asset creation.