Buoyancy in revenue collection coupled with ongoing efforts to keep expenditure under control will provide the elbow room to make higher allocations for projects aimed at boosting at socio-economic development, Mr Chidambaram was understood to have told members of the parliamentary consultative committee attached to the finance ministry.

Seeking suggestions from members of the consultative committee for preparation of the 2008-09 budget, he said that the central tax to Gross Domestic Product (GDP) ratio is estimated to have increased to 11.8 per cent in 2007-08 as per budget estimates, providing additional resources to the centre for social expenditure and achieve fiscal consolidation.

Buoyant economic growth along with efforts to improve the tax administration system has seen the Central tax to GDP ratio is estimated to have increased from 8.2 per cent in 2001-02 to 11.8 per cent in 2007-08 as per budget estimates.

Additional revenue collections would enable the government to see the India growth story sustained and consolidated over the Eleventh Five Year Plan period, Mr Chidambaram added.