Fiscal parameters slip from RE in Apr-Feb

A few days before release of the official figures for the Centre's fiscal deficit for 2012-13, a finance ministry report says deterioration was seen on key parameters in relation to the revised estimates (RE) during April-February of the year, compared to the corresponding period of 2011-12.

"The fiscal outcome during April-February of FY'13 indicates some deterioration in terms of key deficit indicators as a percentage of revised estimates (RE), vis-a-vis their position during the same period of the previous fiscal year, mainly due to increased expenditure," says a quarterly public debt management report by the Middle Office in the ministry.

The ministry recently exuded confidence on bringing down the Centre's fiscal deficit to below 5.2 per cent of gross domestic product (GDP) as pegged in the RE.

The report says gross tax collections during the period at 78.3 per cent of the RE were marginally higher than 78 per cent a year before. Total expenditure during April-February 2012-13 at 85.2 per cent of the RE was higher than 83.9 per cent during the same period of the previous year.

"As a result of higher expenditure, revenue deficit and fiscal deficit during April-February 2012-13 at 101.2 per cent and 97.4 per cent of RE were higher than 96.6 per cent and 94.6 per cent, respectively, during the same period a year ago," the Middle Office report said.

The primary deficit, basically the fiscal deficit sans interest payments, at 119.2 per cent of the RE, was also higher than 104.5 per cent during the corresponding period of the previous financial year, the report said.

Finance Minister P Chidambaram had come out with a five-year fiscal roadmap which pegged the deficit at 5.3 per cent of GDP for 2012-13 against 5.1 per cent in the budget estimates. The RE put it at 5.3 per cent. He recently exuded confidence that the deficit would be lower than the RE.

The fiscal deficit figures for all of 2012-13 are scheduled to be released on Friday.

The report said government debt rose 0.4 per cent to a little over Rs 40.83 lakh crore in the January-March period of 2012-13, over the previous quarter. This quarter-on-quarter increase of 0.4 per cent (provisional) compares with an increase of four per cent in the previous quarter," it said.