Charter of the Economy opposed to this the Annual Plan projects a substantially larger level of public investment, financed primarily through budgetary borrowings. Even bigger differences can be observed from Table 19.1 in the outlook for public finances in 2021-22. This is the Achilles heel of the program. The bottom line is that the IMF expects the consolidated budget deficit to be brought down to 6.3 percent of the GDP. As compared to this, the budget estimates are likely to lead to a budget deficit of 7.7 percent of the GDP, due primarily to a lower level of tax revenues by almost 2 percent of the GDP and higher development spending. Table 19.1: Projection of Macroeconomic Variables GDP Growth Rate (%) Rate of Inflation (%) Level of Investment(% of GDP) Public Private Public Finances(% of GDP)* Total Revenues Tax Revenues Non-Tax Revenues Total Expenditure Current Expenditure Development Expenditure Budget Deficit Balance of Payments Current Account Deficit($ million) Exports – Growth Rate (%) Imports – Growth Rate (%) Remittances – Growth Rate (%) Financial Account Change in Reserves *as in the Budgets for 2021-22. IMF 4.0 8.0 15.5 2.6 13.0 16.4 14.2 2.4 22.6 19.7 2.9 6.3 -5419 5.5 8.7 6.1 7533 3442 Government 4.8 8.0 14.4 4.4 10.0 15.5 12.3 3.2 23.2 19.5 3.8 7.7 -2216 6.5 9.5 7.5 5896 4680 The balance of payments projections of the Annual Plan are also somewhat more optimistic, with the current account deficit down to$2.2 billion in 2021-22 as compared to the IMF’s estimate of$5.4 billion. The month of May 2021 has witnessed the return to a current account deficit in the month of over$600 million. Therefore, the IMF projection appears to be more realistic. Overall, both projections reveal that foreign exchange reserves could continue rising in 2021-22. 184