Authorities asked to meet tax mop up targets: FM

 With fiscal deficit touching 68% of the Budget estimate in the first half of 2011-12, the Government today said tax authorities have been asked to make "concerted efforts" to achieve the revenue targets.

Finance Minister Pranab Mukherjee said during the Question Hour in the Rajya Sabha that to contain the fiscal deficit, the government has advised all MinistriesDepartments to adhere to the expenditure ceilings in the Budget Estimate 2011-12.

"Instructions have also been issued to concerned Departments to make concerted efforts to achieve the revenue collection targets for 2011-12," he said.

In the Budget, the government had estimated the gross tax collection at Rs 9.32 lakh crore during 2011-12.

The government has set the target of restricting fiscal deficit in 2011-12 to 4.6% of the GDP, as against the 4.7% level in FY11.

However, with Rs 2.8 lakh crore gap in revenue and expenditure in the first six months of 2011-12, fiscal deficit has already touched 68% of the Budget estimate. During the same period last year, it was Rs 1.33 lakh crore or 34.9% of the estimate.

"Increase in the fiscal deficit during the first half of 2011-12 is due to front loading of direct tax refunds in the current year," Mukherjee said.

He said the deficit was lower in the same period last year on account of one time receipt of non-tax revenue from auction of 3G and BWA spectrum.

With an aim to contain the deficit, Mukhejree added, the ministries and departments have also been advised to meet additional expenditure requirements, if any, through savings from the overall expenditure outlay.

Replying to a query on additional market borrowing of Rs 52,872 crore during the year, he said it was due to estimated shortfall in financing the fiscal deficit, mainly on account of shortfall in small savings.