Fiscal deficit falls 17% in April-August

The central government’s fiscal deficit declined 16.93 per cent to Rs 1,51,425 crore in April-August 2010, against Rs 1,82,290 crore in the corresponding period last financial year. The deficit came down on account of Rs 1,06,000 crore realised from the auction of sprectrum for 3G and broadband wireless access (BWA) services.

In the first five months of the financial year, fiscal deficit has been 39.7 per cent of the Budget Estimate of Rs 3,81,408 crore for the full financial year. It had stood at Rs 4,12,307 crore in 2009-10. The fiscal deficit in the April-August period last year was at 45.5 per cent of the total estimate for the year. In August, however, fiscal deficit increased to Rs 60,510 crore from Rs 50,719 in the previous month.

India’s fiscal deficit for 2009-10 had increased to 6.6 per cent of 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 had 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 in the current financial year.

In the April-August period of 2010-11, non-tax revenue receipts were Rs 1,52,299 crore, exceeding the full-year target of Rs 1,48,118 crore on sale of airwaves for mobile telephony. The government had budgeted Rs 35,000 crore from the auction of 3G and BWA spectrum.

In the same period last year, non-tax revenue receipts were at 35.9 per cent of the estimate.

Tax revenue during the April-August period reached 25.9 per cent of the full financial-year estimate of Rs 1,38,500 crore. The revenue collection target for the current financial year is Rs 5,34,094 crore. The total expenditure stood at Rs 4,47,703 crore, thereby reaching 40.4 per cent of the target for the full year. Plan expenditure stood at Rs 1,36,454 crore, while non-plan expenditure was at Rs 3,11,249 crore. The government’s expenditure for the current financial year is targeted at Rs 11,08,749 crore.

The Centre’s revenue deficit in the first five months of the financial year stood at Rs 1,00,352 crore, representing 36.3 per cent of the target for the full financial year.