The Controller General of Accounts (CGA) in its latest data has showed that the government's fiscal deficit, or the gap between the government's expenditure and revenue, touched 52% of the Budget Estimate (BE) for the full year in the first two months (April-May) of 2019-20. In absolute terms, the fiscal deficit was Rs 3,66,157 crore, while it was 55.3% of 2018-19 budget estimate in the year-ago period.
The data showed that revenue receipts of the government during April-May, 2019-20 was 7.3% of the BE. In the year-ago period also, the revenue receipts were at similar level. However, the capital expenditure was only 14.2% of the BE as compared to 21.3% in the year-ago period. Total expenditure during April-May period stood at Rs 5.12 lakh crore or 18.4% of BE. It was 19.4% of BE in the corresponding period of the last fiscal.
In the Interim Budget passed in February, the government had estimated the fiscal deficit at Rs 7.03 lakh crore for 2019-20. The government aims to restrict the fiscal deficit at 3.4% of the Gross Domestic Product (GDP) during the current fiscal, same as the last financial year.
