Govt meets FY17 fiscal deficit target

The government has met its fiscal deficit target of 3.5 per cent of gross domestic product for 2016-17. From official data issued on Wednesday, the deficit in absolute terms was Rs 5.35 lakh crore; the budgeted estimate had been Rs 5.34 lakh crore. As a percentage of GDP (at current prices) of Rs 151.8 lakh crore, that comes to 3.52 per cent. The latest provisional GDP data was also issued on Wednesday.

This was achieved in spite of a higher than budgeted capital expenditure for the year. “Encouragingly, tax inflows and capital spending exceeded the revised estimates, thereby offsetting the anticipated shortfall in non-tax revenue. Higher than estimated capital spending has provided a boost to the quality of expenditure, relative to the revised estimates,” said Aditi Nayar, principal economist with rating agency ICRA.

Total expenditure was Rs 19.75 lakh crore; the budgeted estimate of Rs 20.14 lakh crore. Plan spending was Rs 5.72 lakh crore, compared with estimates of Rs 5.84 lakh crore; non-Plan expenditure was Rs 14.03 lakh crore, as against the budgeted estimate of Rs 14.3 lakh crore.

From this financial year, 2017-18, expenditure will be classified into revenue spending and capital spending. A quick calculation shows that capital spending for 2016-17 was Rs 2.9 lakh crore, as against budgeted estimates of Rs 2.79 lakh crore.

Total receipts for 2016-17 were Rs 13.8 lakh crore, compared with budgeted estimates of Rs 14.8 lakh crore. Tax revenue showed a positive trend, partly due to increased compliance after demonetisation. It was Rs 11.02 lakh crore; the budget estimate was Rs 10.89 lakh crore.

Non-debt capital receipts were boosted by divestment returns, the highest so far in a year. 

Total non-debt capital receipts were Rs 63,503 crore, compared with budgeted estimates of Rs 56,571 lakh crore. Non-tax revenue was Rs 2.74 lakh crore; the budget estimate was Rs 3.34 lakh crore.