Millennium Post

8-month fiscal deficit 99% of full-year Budget target

Reflecting tight financial position of the central government, fiscal deficit at Rs 5.25 lakh crore as of November-end almost touched 99 per cent of the full year target of Rs 5.31 lakh crore. As per the data released by Controller General of Accounts on Wednesday, the fiscal deficit during April-November period was 98.9 per cent of the 2014-15 estimate, mainly because of subdued revenue realisation.

The government is committed to restricting the fiscal deficit at 4.1 per cent of the GDP during the current financial year, the lowest in seven years, and has taken several steps towards it.

The fiscal deficit — the gap between government expenditure and revenue —during the same period last year was 93.9 per cent of that year's target.

The data revealed that government's net tax revenue collection till November end was Rs 4.13 lakh crore or 42.3 per cent of the Rs 9.77 lakh crore estimated for the whole year.

The tax mop-up was slightly higher (44.8 per cent) during the same period last year. Total receipts (from revenue and non-debt capital) during the eight months of the year was Rs 5.49 lakh crore or 43.4 per cent of the target, lower than 45.6 per cent collected in corresponding period 2014-15.

Plan expenditure of the government during the period was Rs 2.93 lakh crore (51.1 per cent) and non-Plan expenditure was Rs 7.8 lakh crore (64 per cent), the data said. The fiscal deficit was 4.5 per cent of GDP in FY14. It was 4.9 per cent in FY13. The government had put in place a fiscal consolidation roadmap as per which the deficit has to be brought down to 3 per cent of the GDP by 2016-17.
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