The government, for the month of April 2005-06, has contained the fiscal gap at Rs 28,406 crore. The fiscal deficit in the first month has improved to 18.8% in 2005-06 from 19.1% during 2004-05. The figures released by Controller General of Accounts in absolute terms showed the deficit at Rs 28,406 crore in April 2005, which is 9.3% higher than Rs 25,998 crore in April 2004. While revenue receipts was higher at Rs 1,717 crore in April 2005 compared to Rs 823 crore a year ago, non-tax capital receipts declined sharply to Rs 133 crore from Rs 3,456 crore in April last year. The lower receipts is due to widening of revenue deficit to Rs 27,016 crore in the first month of 2005-06 compared to Rs 23,218 crore a year ago. However, the centre, in the first month of 2005-06, has been able to trim its spendings to Rs 30,256 crore - marginally lower than Rs 30,277 crore a year ago. Fiscal deficit has been budgeted at Rs 1,51,144 crore or 4.5% of GDP for 2005-06 compared to Rs 1,36,452 crore (4.3%) last fiscal.
