Since then, there has been downward rigidity in the fiscal deficit level. Centre’s gross fiscal deficit in 2010–11 at 4.7 percent of GDP may appear as a significant improvement over the budgeted 5.5 percent level and the 6.4 percent level in 2009–10.
This improvement however reflected one off revenue proceeds from 3G/BWA auctions as also revenue buoyancy associated with cyclical upswing in growth, as reflected in 20 percent growth in nominal GDP relative to 12.5 percent budgeted growth in nominal GDP. Thus, the role of permanent or structural drivers of fiscal consolidation was rather weak.