Fiscal deficit crosses 74% of estimates in Apr-Oct

In signs of deterioration of the country's financial situation, the government's fiscal deficit has risen to Rs 3.07 lakh crore, or 74% of the Budget estimates, in the first seven months of 2011-12.

According to the Controller General of Accounts (CGA) data, the government's fiscal deficit went up to Rs 3.07 lakh crore, or 74.4% of the Budget estimates at the end of October, as non-tax revenue growth declined.

The Centre's fiscal deficit -- gap between overall expenditure and receipts -- was 42.6% of the estimates in the same period last year.

For 2011-12 fiscal, the government has estimated a deficit of Rs 4.12 lakh crore or 4.6% of GDP.

The rise in fiscal deficit is mainly on account of lower mobilisation of non-tax revenue compared to same period last year when it had mobilised over Rs 1.08 lakh crore on account of 3G and BWA spectrum auctioning.

The revenue receipt stood at over Rs 5.39 lakh crore during the seven-month period against the Budget estimate of Rs 7.89 lakh crore for the entire fiscal. This is 45.5% of the estimates.

At the end of September, non-tax revenue collection has stood at 54.4% of Budget estimates, compared to 119% in the same period a year ago.

The government has so far mobilised just Rs 1,145 crore from disinvestment. This is far less than the target of Rs 40,000 crore set for the entire fiscal.

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-October this year stood at Rs 2.43 lakh crore, or 79% of the Budget estimates.