Fiscal deficit up at Rs 26,000 cr in April

A sharp 52 per cent rise in expenditure coupled with a marginal increase in revenue receipts has pushed up the Centre's fiscal deficit to almost Rs 26,000 crore in April, 52 per cent higher than what it was in April 2003. The fiscal deficit stood at 19.1 per cent of the Budget estimate of Rs 1,36,452 crore.

According to the data released by the Controller General of Accounts, the revenue collection stood at Rs 823 crore in April this year, compared with Rs 576 crore in the corresponding period last year.

The fiscal deficit at the end of April 2003 was relatively lower at 11.2 per cent of the budgeted amount.

Although the Centre's gross tax collection was Rs 4,461 crore during April, it had to assign Rs 5,729 crore to states. Total receipts, including non-debt capital receipts of Rs 3,456 crore, in April 2004 amounted to Rs 4,279 crore or 1.3 per cent of the budgeted Rs 3,20,982 crore for the entire fiscal.

Total expenditure surged to Rs 30,277 crore during the month, which was 6.6 per cent of the budgeted Rs 4,57,434 crore for the entire fiscal.

While Plan expenditure rose 85 per cent to Rs 6,102 crore in April, the non-Plan expenditure stood at Rs 24,175 crore, up 45 per cent compared with April last year.

Of the total non-Plan spending of the government, interest payments alone amounted to Rs 7,597 crore. Lower revenue mop-up led to a relatively higher revenue deficit of Rs 23,218 crore in April, which amounted to 25.8 per cent of the budgeted Rs 89,860 crore for 2004-05.

Primary deficit, which is equivalent to fiscal deficit after deducting interest payment, was Rs 18,401 crore in April.

The Centre's fiscal deficit is budgeted at Rs 1,36,452 crore for 2004-05, or 4.4 per cent of the GDP. During 2003-04, the actual deficit was at Rs 1,25,960 crore (4.6 per cent of GDP), which is lower than the revised estimate of Rs 1,32,103 crore (4.8 per cent of GDP).