The fiscal deficit for the current financial year climbed to 3.6 per cent of the gross domestic product by the end of December 2001, with the net revenue receipts totaling just Rs 1,32,690 crore. In absolute terms, the fiscal deficit stood at Rs 89,014 crore against the target of Rs 1,16,314 crore, thereby, accounting for 76.5 per cent of the targeted 4.7 per cent.
The revenue deficit, which reflects the difference between the current revenue receipts and the expenditure of the government, was Rs 66,559 crore or 84.4 per cent of the budget target of 3.2 per cent at the end of the month, according to the figures released by the Controller General of Accounts on the Net. The fiscal deficit at the end of December 2000 was 58 per cent of the budget target at Rs 64,628 crore.
The current fiscal deficit, however, is high because of the policy adopted by the expenditure department of the finance ministry of paying liabilities as they occur. Accordingly, the government has already paid Rs 4,276 crore towards its small-saving liabilities against Rs 2,938 crore which was the budgeted target.
On the expenditure side, the Plan expenditure has begun to rise with the government already having spent Rs 61,940 crore or 65 per cent of its budget estimate by December end. This is almost Rs 10,000 crore more than the figure of Rs 52,403 crore in the previous month. Year-on-year rise is about 9 per cent compared to December 2000.
The non-plan expenditure stands at Rs 171,778 crore or 62.4 per cent of the budget estimate of Rs 275,123 crore. Last year, the rate of growth was 61.5 per cent at the same time. The poor revenue receipts are because of the poor growth in tax revenue. The revenue receipts have only been Rs 84,996 crore or 52.1 per cent of the target.
On a worrying note, the healthy growth in non-tax revenue receipts till November has got reversed. Total non-tax revenue receipts till December end stood at Rs 47,694 crore or 69.4 per cent of the budget target against 71.5 per cent during the same time last year. However, non-debt capital receipts, which include recovery of loans from state governments, have shot up to Rs 12,014 crore or 44.2 per cent of the target compared to Rs 7,502 crore in December 2000.
