The government’s fiscal deficit in April-May was Rs 1,30,726 crore, being 31.7 per cent of the Budget Estimate (BE) of Rs 4,12,817 crore for the full financial year.
In April-May 2010, the fiscal deficit was Rs 1,00,907 crore or 26.5 per cent of the BE for the year.
The government is aiming to restrict its fiscal deficit to 4.6 per cent of the gross domestic product (GDP) this year, lower than the 4.7 per cent in 2010-11. However, a higher-than-expected expenditure may make the target difficult. Economists are expecting the fiscal deficit to be higher than five per cent this year.
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| * The government is aiming to restrict its fiscal deficit to 4.6 per cent of the gross domestic product this year, lower than the 4.7 per cent in 2010-11 |
| * Economists are expecting the fiscal deficit to be higher than five per cent this year |
| * The revenue deficit during the two-month period in 2011-12 was Rs 1,10,069 crore, or 35.8 per cent of this year’s estimate of Rs 3,07,270 crore, against 29.4 per cent in the year-ago period |
| * Revenue receipts were Rs 28,716 crore or 3.6 per cent of the total target of Rs 7,89,892 crore in the current financial year |
| * Net tax revenue was Rs 23,103 crore in April-May or 3.5 per cent of the total estimate of Rs 6,64,457 crore |
“Although the Union Budget’s fiscal deficit target of 4.6 per cent of GDP for FY2011-12 may not be met due to the rising cost of subsidies, the potential slippage is unlikely to be significant,” Fitch Ratings had said earlier this month.
The revenue deficit during the two-month period in 2011-12 was Rs 1,10,069 crore, or 35.8 per cent of this year’s estimate of Rs 3,07,270 crore, against 29.4 per cent in the year-ago period. Revenue receipts in April-May were Rs 28,716 crore or 3.6 per cent of the total target of Rs 7,89,892 crore in the current financial year. This is lower than the 6.5 per cent of total revenue receipts garnered in the corresponding period of last year.
Of the total revenue receipts, net tax revenue was Rs 23,103 crore in April-May or 3.5 per cent of the total estimate of Rs 6,64,457 crore. Non-tax revenue in the first two months comprised 4.5 per cent of the total target of Rs 1,25,435 crore, at Rs 5,613 crore.
The total expenditure was Rs 1,66,262 crore or 13.2 per cent of the BE of Rs 1,257,729 crore. It was 13.2 per cent in the year-ago period as well.