Revenue deficit hits 82.6%

The revenue deficit has touched a staggering 82.6 per cent of the budget estimate of 2.5 per cent of the gross domestic product. The cumulative deficit was at Rs 62,906 crore during the first five months of 2004-05.

The latest cumulative monthly data on central government finances, released by the Controller General of Accounts today, shows that the rise is mainly on account of poor growth in revenue receipts which accounted for a mere 22.1 per cent of the Budget estimates at Rs 68,357 crore, as against 25.1 per cent in the corresponding period last year.

The net tax revenue was just 19.5 per cent of the Budget estimates up to August 2004, compared to a more impressive 21.3 per cent during April-August 2003.

The non-tax revenue is also lower at Rs 22,636 crore, accounting for 30 per cent of the Budget estimates as compared to 35.1 per cent during the same period a year ago.

Total receipts were accordingly lower at Rs 1,01,109 crore, accounting for 29.7 per cent of the Budget estimates, compared to a higher 35.6 per cent during the same period last year.

The total expenditure at Rs 1,53,618 crore, accounting for 32.1 per cent of the Budget estimate, was more or less similar to the corresponding period of last year when it accounted for 33 per cent of the Budget during the first five months of 2003.

While the plan expenditure at Rs 37,800 crore, accounting for 26 per cent of the budget estimate, is lower than last year's level of 30 per cent, the non-plan expenditure at Rs 1,15,818 crore, accounting for 35 per cent of the Budget estimate, remains similar to last year's level.

The government had earlier this week announced austerity measures to contain non-development expenditure which included not allowing any deviations of expenditure from the prescribed budgetary ceilings.

Due to higher expenditure, the centre's fiscal deficit was accordingly higher at Rs 52,509 crore, accounting for 38.2 per cent of the Budget estimates and 4.4 per cent of the GDP, compared to 28.3 per cent in the same period a year ago. Finance Minister P Chidambaram has set a fiscal deficit target of Rs 1,37,407 crore in the Budget for the current fiscal.

The primary deficit of the centre, which does not include the impact of interest payments on the centre's finances, is already close to 94 per cent of the Budget estimates at Rs 7,418 crore compared to a mere 3 per cent in the corresponding period a year ago.