Country's fiscal deficit during the April-December period was RS 4.07 lakh crore, or 78.8% of the budgeted full fiscal year 2012/13 target, government data showed on Thursday.
During the same period in the previous fiscal year, the deficit was 92.3% of the budgetary target.
Net tax receipts for April-December stood at Rs 4.84 lakh crore while total expenditure was Rs 9.91 lakh crore.
In March 2012, the government had budgeted a fiscal deficit of Rs 5.14 lakh crore, or 5.1% of the gross domestic product (GDP), for the current fiscal year that ends in March.
However, in October, strained finances forced New Delhi to revise the deficit target to 5.3%.