Revenue deficit at 84% of Budget target in April-October

The revenue deficit spiraled to Rs 63,879 crore in the first seven months of the fiscal year, accounting for nearly 84 of the Budget estimate.

The deficit was up despite a marked improvement in the total expenditure, which was lower at 49 per cent of the Budget estimate compared with nearly 58 per cent in the corresponding period in the previous year.

Figures released by the Controller General of Accounts today indicated that the revenue deficit had increased sharply during the first seven months of the current fiscal year mainly on account of a lacklustre growth in revenue receipts.

Revenue receipts of Rs 1,32,790 crore during the April-October period was 43 per cent of the Budget estimate, against 47.3 per cent in the same period a year ago.

The government's total receipts were lower at Rs 1,71,480 crore accounting for 50.4 per cent of the Budget estimate mainly on account of lower tax and non-tax revenue and lower non-debt capital receipts.

The total expenditure of Rs 2,33,615 crore, accounting for 48.9 per cent of the Budget estimate, was markedly lower than the previous year when it accounted for 58 per cent of the Budget estimates during the period April-October.

A lower expenditure helped keep the fiscal deficit low at Rs 62,135 crore, accounting for 45.2 per cent of the Budget estimate, compared with 56 per cent during the corresponding period previous year.

Despite the overall improvement in total expenditure, the non-Plan expenditure on the revenue account remained at 53.5 per cent of the Budget estimate at Rs 1,57,024 crore, which was roughly the same last year.

The Plan expenditure on the revenue account was, however, lower at Rs 39,645 crore or 43.2 per cent of the Budget estimate against 51.7 per cent in the same period last year.

In terms of sources for financing the deficit, the figures indicate that the government has already attained 100 per cent of the Budget estimate in external borrowing at Rs 8,040 crore compared with a Budget estimate of Rs 8,076 crore.

In case of domestic financing the market borrowings at Rs 2,61,49 crore accounted for a mere 29 per cent of the budget estimate compared to 66 per cent during the period April-October 2003-04.