At a time when the Reserve Bank of India (RBI) expressed concern at the government’s rising expenditure compared to its receipts, the fiscal deficit in the first quarter of this financial year stood at a little more than a third of the Budget estimate for 2012-13.
While the government’s non-Plan expenditure is rising and the disinvestment process is yet to garner any money to the exchequer, the fiscal deficit at the end of April-June 2012-13 stood at Rs 190,460 crore, 37.1 per cent of the budget estimates of Rs 513,590 crore, official data showed on Tuesday.
In the corresponding period of the last financial year, fiscal deficit was 39.4 per cent of the estimates. The year’s deficit saw a jump to 5.7 per cent of the GDP against the budget estimate of 4.6 per cent. In the current financial year, the fiscal deficit is estimated at 5.1 per cent of the GDP.
In the quarterly review of its monetary policy, the RBI on Tuesday said financing the deficit from domestic savings crowds out private investment, thus lowering growth prospects.
This year, the government has pegged its market borrowings at Rs 5.7 lakh crore, 11 per cent more than the Rs 5.1 lakh crore mopped up last year. In fact, the government had raised 20 per cent more than estimated last year, at Rs 4.17 lakh crore. As much as Rs 3.70 lakh crore or 65 per cent of total borrowings are to be mopped up in the first half of this financial year.
In fact, the deficit was high in the first quarter despite taxes fetching reasonable revenues and plan expenditure not rising much.
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Data released by the Controller General of Accounts showed tax revenues stood at Rs 104,505 crore in the first quarter, constituting 13.6 per cent of the estimates for this year. This stood at 11.8 per cent in the corresponding period of last year.
However, non-debt capital receipts stood at Rs 2,402 crore, constituting 5.8 per cent of the budget estimates for entire the year since disinvestment has so far not raised any revenues of the Rs 30,000 crore pegged so far.
Plan expenditure stood at Rs 86,221 crore, accounting for 16.5 per cent of the estimates at Rs 521,025 crore. In the corresponding period last year, expenditure under this head constituted 19 per cent of the estimates.
| GOVT’S ACCOUNTS AT THE END OF JUNE ’12 | |||
| Figures in (Rs crore) | 2012-13 (BE) | 2012-13* (Actuals) | % of actuals to Budget estimates |
| 1.Revenue receipts | 935,685 | 118,720 | 12.70 |
| 2.Tax revenue | 771,071 | 104,505 | 13.60 |
| 3.Non-tax revenue | 164,614 | 14,215 | 8.60 |
| 4.Non-debt capital receipts | 41,650 | 2,402 | 5.80 |
| 5.Total receipts (1+4) | 977,335 | 121,122 | 12.40 |
| 6.Non-Plan expenditure | 969,900 | 225,361 | 23.20 |
| 7.Plan expenditure | 521,025 | 86,221 | 16.50 |
| 8.Total expenditure (6+7) | 1,490,925 | 311,582 | 20.90 |
| 9.Fiscal deficit (8-5) | 513,590 | 190,460 | 37.10 |
| BE: Budget Estimates; *up to June Source: Controller General of Accounts | |||
Non-Plan expenditure in the first quarter accounted for 23.2 per cent of budget estimates for 2012-13, against 21.2 per cent in the corresponding period of last year.