Economy

India's April-October fiscal deficit crosses full year target

Updated : November 30, 2018 08:03 PM IST

Net tax receipts in the first seven months of the fiscal year that ends in March 2019 were Rs 6.61 lakh crore, government data showed.

The fiscal deficit or gap between expenditure and revenue was Rs 6.48 lakh crore or 103.9 percent of Budget Estimate (BE) during April-October of the current financial year. At end of October 2017-18, the deficit was 96.1 percent of the BE.

India's April-October fiscal deficit crosses full year target

The full-year fiscal deficit target of Rs 6.24 lakh crore was breached at October-end mainly on account of lower revenue collections, showed government data on Friday, reflecting deterioration in public finances.

The government has budgeted to cut fiscal deficit to 3.3 percent of GDP in 2018-19 from 3.53 percent in the previous financial year.

According to the data released by the Controller General of Accounts (CGA), the revenue receipts of the government totalled Rs 7.88 lakh crore or 45.7 percent of the BE for 2018-19 as compared to 48.1 percent of BE last year. The government has budgeted to mop up Rs 17.25 lakh crore revenue during the current fiscal.

Tax revenue was 44.7 per cent of BE compared to 51.6 per cent achieved in the comparable period of the last year.

As per the CGA data, the total expenditure of the government at October-end was Rs 14.56 lakh crore or 59.6 per cent of the BE. The expenditure in terms of percentage of the BE was marginally higher in the year-ago period.

"Fiscal deficit figure shown in monthly accounts during a financial year is not necessarily an indicator of fiscal deficit for the year as it gets impacted by temporal mismatch between flow of not-debt receipts and expenditure up to that month on account of various transitional factors both on receipt and expenditure side, which may get substantially offset by the end of the financial year," CGA said.

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