The fiscal deficit of the Centre has climbed to 1.17 per cent of the gross domestic product (GDP) in the first two months of the current fiscal, largely because of a steep rise in the Plan expenditure. The target for the fiscal deficit during 2002-03 is 5.3 per cent.
The monthly figures of government accounts released by the Controller General of Accounts today show that the net tax revenue has gone up to Rs 9,869 crore as on May 31. This has helped the Centre to rein in its market borrowing to Rs 37,857 crore compared to Rs 40,638 crore in May last year. The situation has become even better in June according to the finance ministry officials as total tax revenue has risen to Rs 35,000 crore, because of good collections from the first instalment of advance corporate tax.
The total receipts of the government as at end May stood at Rs 15,586 crore, which is just short of 6 per cent of the total projected revenue of Rs 2,74,785 crore for this fiscal. This included Rs 2,296 crore towards the recovery of loans that include repayment of loans by state governments. In the same period last year, the total recovery of loans was Rs 435 crore.
Within the total expenditure of Rs 45,569 crore, the Plan expenditure has beaten the seasonal trend to climb to Rs 11,316 crore compared to Rs 10,611 crore in the same month last year. It has already touched 10 per cent of the Plan target compared to 3.7 per cent at the end of April 2002.
Non-Plan expenditure has also jumped to Rs 34,523 crore against Rs 26,059 crore recorded last year. As a result, the fiscal deficit is 22 per cent of the annual target compared to 24.5 per cent in May 2001-02.
Reflecting the healthy trend in government finances so far, the revenue deficit, which measures the difference between the government
