Fiscal deficit down 39.08% in Apr-Nov

The government’s fiscal deficit fell 39.08 per cent to Rs 1,86,522 crore in April-November, compared to Rs 3,06,221 in the same period last year. The fall in deficit can mainly be attributed to the Rs 1,06,000-crore revenue from the sale of spectrum for high-speed telephony and broadband services. Tax collections, both direct and indirect, have also remained buoyant this year.

The deficit, at Rs 1,86,522 crore in the first eight months of 2010-11, is 48.9 per cent of the Budget Estimate of Rs 3,81,408 crore.

In April-November last year, it had stood at 76.4 per cent of the Budget Estimate, according to the data released by the Controller General of Accounts today.

The Centre’s revenue deficit in the first eight months of the current financial year stood at Rs 1,40,158 crore, representing 50.7 per cent of the target of Rs 2,76,512 for the full financial year.

In April-November period of this financial year, non-tax revenue receipts were Rs 1,80,082 crore, crossing the full-year target of Rs 1,48,118 crore on account of sale of airwaves for mobile telephony and broadband wireless access (BWA).

The government had budgeted Rs 35,000 crore from the auction of 3G spectrum and BWA. In the same period last year, non-tax revenue receipts had stood at just 52.9 per cent of the estimate.

At Rs 2,96,634 crore, tax revenue during April-November reached 55.5 per cent of 2010-11 estimate. The revenue collection target is Rs 5,34,094 crore for the current financial year. Total receipts, at Rs 5,04,165 crore, were 69.3 per cent of the total estimate of Rs 7,27,341 crore for the year. The total expenditure stood at Rs 6,90,687 crore, thereby reaching 62.3 per cent of the target of Rs 11,087,49 crore for the full year. This represented an increase of 15 per cent from Rs 6,21,672 crore in the period a year ago.

India’s fiscal deficit for 2009-10 had increased to 6.6 per cent of the GDP on account of the stimulus given by the government to help the economy recover from the effect of the global financial meltdown.

The government cut duties and increased plan expenditure which resulted in a higher deficit. The government has projected the fiscal deficit to come down to 5.5 per cent of GDP in 2010-11.