Public spending, salaries drive H1 fiscal deficit to 84% of Budget estimate

The Centre’s fiscal deficit ballooned in the first half of the fiscal year 2016-17 on account of elevated public spending and higher salaries outgo. However, revenue from divestment and other quarters including spectrum sale and black money scheme over the next few months will facilitate achievement of fiscal deficit target.

The gap between Centre’s expenditure and revenue touched 83.9% of the budget target for the year, significantly higher than 68.1% in the corresponding period of the previous fiscal. In absolute terms, the fiscal deficit was at Rs 4.47 crore in the first half of 2016-17 against Rs 5.34 lakh