Fiscal Deficit Hits 94% of Annual Budget Target - The New Indian Express

Fiscal Deficit Hits 94% of Annual Budget Target

Published: 01st January 2014 12:02 PM

Last Updated: 01st January 2014 12:02 PM

The country’s fiscal deficit touched Rs 5,09,557 crore during April-November or 93.9 per cent of the annual target, the Controller General of Accounts (CGA) said on Tuesday.

The government had fixed the fiscal deficit, which is the gap between expenditure and revenue, at Rs 5,42,499 crore for the current financial year. The fiscal deficit was 80.4 per cent of the budget estimate at the end of November in 2012-13.

The government has repeatedly asserted that the fiscal deficit would be restricted to 4.8 per cent of GDP, down from 4.9 per cent in 2012-13. Finance Minister P Chidambaram had on several occasions said the fiscal deficit target is a red line that would not be breached.

Reacting to the numbers Aditi Nayar, Senior Economist, ICRA said, “The Central Government’s fiscal situation remains gloomy, with high deficits in the eight months ending November 2013 and a challenging revenue outlook for the rest of this fiscal. Some restrictions of productive expenditure seem necessary for the Government to restrict its fiscal deficit to the targeted level.”

According to CGA, revenue receipts totalled Rs 5,02,691 crore during April-November, or 47.6 per cent of the budget estimate. The government is aiming at revenue of Rs 10,56,331 crore this fiscal.

The government’s expenditure was Rs10,21,195 crore during April-November or 61.3 per cent of the budgeted Rs 16,65,297 crore for this financial year.

The revenue deficit at Rs 3,93,019 crore at the end of November has crossed the year’s target of Rs 3,79,838 crore.

Till November this financial year, plan expenditure was at Rs 2.9 lakh crore, representing 52.4% of BE at Rs 5.5 lakh crore. It was much higher than 46.7% in the same period of 2012-13.

Non-plan expenditure was also higher as percentage of BE in the first eight months of the current financial year. It stood at Rs 7.30 lakh crore, about 65.8% of BE at Rs 12 lakh crore. The percentage stood at 64.4% in the corresponding period last year.

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