Deficit surges twofold in Apr-Aug to Rs 2.7 lakh cr

The central government's fiscal deficit surged nearly twofold to Rs 2.7 lakh crore during the first five months of the current fiscal due to low revenue realisation.

The deficit was Rs 1.5 lakh crore in April-August period of 2010.

The fiscal deficit, the gap between overall expenditure and receipts, in the first five months of the financial year is over 66% of the Budget Estimate (BE) of Rs 4.12 lakh crore for 2011-12, as per the latest data of the Controller General of Accounts (CGA).

The rise in Centre's fiscal deficit is on account of lower tax mobilisation compared to the same period last fiscal. The tax refund has brought down the net revenue collection.

The revenue receipt stood at Rs 1.88 lakh crore during the period against the BE of Rs 7.89 lakh crore for the entire fiscal. This is 23.9% of the BE.

At the same time, the non-tax revenue collection has declined sharply to 34.8% compared to 102.8% in the same period a year ago.

The non-tax revenue stood at Rs 43,655 crore as against the Budget Estimate of Rs 1.25 lakh crore for the whole year.

Besides, the government has mobilised just Rs 1,145 crore from disinvestment, although the target for the entire fiscal is Rs 40,000 crore. Disinvestment plan of the government has been hit due to uncertainty in the stock market fuelled by global economic slowdown.

Meanwhile, the revenue deficit, the difference between revenue earned and expenses, during April-August this year stood at Rs 2.3 lakh crore. This is almost twice the Rs 1.01 lakh crore figure during the first five months of 2010-11.

This also constitutes 75% of the Budget Estimate of Rs 3.07 lakh crore revenue deficit for the entire 2011-12 fiscal.