The Centre’s fiscal deficit stood at Rs 1 lakh crore during April-May, constituting over a fourth of the budget estimate for the entire 2010-11 financial year.
During these two months, total expenditure incurred by the government stood at Rs 1.47 lakh crore, while its total receipts came to only Rs 46,002 crore, official data showed. In the corresponding month last financial year, fiscal deficit was 22.6 per cent of what was projected for entire 2009-10.
The rise in fiscal deficit is mainly due to higher non-Plan expenditure, at over Rs 1 lakh crore, compared to government revenues.
The government revenues include Rs 1,078 crore from disinvestment in SJVN Ltd and tax revenues of nearly Rs 32,000 crore. The better-than-expected receipts from the auction of spectrum for 3G services and broadband wireless access is likely to reduce fiscal deficit in the coming months.
The budget had projected a lowering of fiscal deficit to Rs 3.81 lakh crore or 5.5 per cent of the gross domestic product (GDP) by the end of the current financial year, from Rs 4.12 lakh crore or 6.6 per cent of GDP in the previous financial year.
Spectrum sale, which resulted in the realisation of over Rs 1 lakh crore, against the estimated Rs 35,000 crore, will alone help the government cut fiscal deficit to 4.47 per cent.