Apr-Oct fiscal deficit at 79% of budget estimates

The Union government's fiscal deficit in the first seven months of the current financial year touched 79.3 per cent of the budget estimates for 2016-17. However, there was a surplus in the month of October because of which the proportion of deficit came down from 83.9 per cent till September. 

Moreover, expenditures were usually front loaded and more taxes came in the later part of the year, balancing the tilt towards higher deficit in the first half than the second half. 

The deficit at this point of time had stood at 74 per cent in the previous financial year.

The government plans to rein in the deficit at 3.5 per cent of India's gross domestic product. The GDP data for the first half will come later on Wednesday, only by when it would become clear as to how much was the deficit as percentage of GDP in April-September of the current financial year. 

Despite slow down in spectrum receipts, the government was able to garner more revenue as proportion of budget estimates in the first seven months of the current financial year against that during the corresponding period of the previous financial year. This was because tax receipts were buoyant. 

Tax receipts stood at 50.3 per cent of budget estimates in April-October this year against 46.6 per cent in these seven months of 2015-16, showed figures released on Wednesday by the Controller General of Accounts.

The expenditure slightly exceeded the previous year's seven months figure in terms of proportion of budget estimates as plan expenditure was stepped up. Expenditure stood at 58.2 per cent of budget estimates against 57.5 per cent.

Of this plan expenditure incurred was 62 per cent of budget estimates against 58.2 per cent and non-plan expenditure was at  56.7 per cent against 57.2 per cent.