The government's fiscal deficit has risen to Rs 3.53 lakh crore, or 85% of the Budget estimates, in the first eight months of 2011-12, reflecting deterioration of the country's financial situation.
According to the Controller General of Accounts (CGA) data, the government's fiscal deficit went up to Rs 3.53 lakh crore, or 85.6% of the Budget estimates at the end of November, as non-tax revenue growth declined.
The Centre's fiscal deficit -- gap between overall expenditure and receipts -- was 48.6% of the estimates in the same period last year.
For 2011-12 fiscal, the government has estimated a deficit of Rs 4.12 lakh crore, or 4.6% of GDP. However the fiscal deficit is expected to exceed the target due to rise in subsidies and lower revenue growth.
According to Planning Commission Deputy Chairman Montek Singh Ahluwalia, the government will not be able to limit the fiscal deficit at targeted 4.6% of gross domestic product (GDP) in the current financial year 2011-12.
"It's [fiscal deficit] going to be more than, I am pretty sure, the Budget amount in the current year... [but] It may not be as much as a 1% point deterioration," Ahluwalia had said last month.
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The rise in fiscal deficit is mainly on account of lower mobilisation of non-tax revenue compared to same period last year when it had mobilised over Rs 1.08 lakh crore on account of 3G and BWA spectrum auctioning.
The revenue receipt stood at over Rs 3.92 lakh crore during the eight-month period against the Budget estimate of Rs 7.89 lakh crore for the entire fiscal. This is 49.7% of the estimates.
The government at many occasion has hinted that it will mix tax collection target of the current fiscal.
At the end of November, non-tax revenue collection has stood at 57.7% of Budget estimates, compared to 121.6% in the same period a year ago.
The government has so far mobilised just Rs 1,145 crore from disinvestment. This is far less than the target of Rs 40,000 crore set for the entire fiscal.
Disinvestment plan of the government has been hit due to uncertainty in the stock market fuelled by global economic slowdown.
Meanwhile, the revenue deficit, the difference between revenue earned and expenses, during April-November this year stood at Rs 2.80 lakh crore, or 91.3% of the Budget estimates.