India’s fiscal deficit target for financial year 2017 has been breached, as per the data released by the Controller General of Accounts, India’s fiscal deficit, the gap between expenditure and revenue, in the April-January period of the current fiscal touched Rs 5.64 lakh crore as against Rs 5.32 lakh crore year-on-year (YoY). The fiscal deficit for the period is 105.7% of the budget estimate (BE) for the full fiscal year 2016-17 as compared to 95.8% of Budget in the same period of last year. The government had budgeted a fiscal deficit of Rs 5,33,904 crore for the current fiscal ending March.
As per the data, the Centre’s revenue deficit during April-January stood at Rs 4.05 lakh crore works out to 114.4% of the BE. It was much lower at 87.8% in the corresponding period of the last financial year. Further, the total revenue receipt till January was Rs 10.09 lakh crore or 73.3% of the budget estimate, lower than 77.2% recorded in the year-ago period.
The data also highlighted that total expenditure during the first 10 months was at Rs 16.18 lakh crore or 81.8% of the budget target while total receipts were at Rs 10.53 lakh crore or 72.9% of the BE. The plan spending was at Rs 4.43 lakh crore or 80.6% of BE for 2016-17 while non-plan expenditure were at Rs 11.74 or 82.2% of the BE. Besides, tax receipts were at Rs 8.16 lakh crore or 77.4% of the full year’s target. Tax revenues pick up in the last few months of fiscal year, while spending is normally front-loaded.