Fiscal deficit reaches 75% of BE in April-August 2014

The fiscal deficit in April-August Financial Year (FY) 2015 stood at Rs 397929 crore, which was 74.9% as a proportion of Budget Estimate (BE) same as 74.6% in the same period last year. The Budget has set the fiscal deficit target at 4.1% of GDP for fiscal 2015, down from 4.6% the previous fiscal.

Meanwhile, the fiscal deficit is high even though Plan and non-Plan expenditures have come down in comparison to the corresponding period of the previous fiscal. Total receipts as a proportion to BE stood at 21.7% in April-August 2014-15 compared with 23% in the same period last year. Similarly, total expenditure was 37.5% of BE compared with 39.8% in the corresponding period last year. Plan expenditure was 30.9% of BE in April-August 2014 compared with 33% in same period in FY14 and non-plan expenditure was 40.6% in FY15 till August 2014 compared with 43.2% in FY14 till August 2013.

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