Fiscal deficit overshoots full-year target

India’s fiscal deficit touched Rs 5.64 lakh crore at the end of January, 105.7 per cent of the full-year target, mainly due to lower realisation of non-tax revenue.
 
The fiscal deficit, reflection of government borrowing to meet revenue-expenditure gap, was 105.7 per cent in the 10-month period of 2016-17, compared to 95.8 per cent in the similar period last financial year.
 
The government had budgeted a fiscal deficit of Rs 5,33,904 crore for the current financial year ending March.
 
According to data released by the Controller General of Accounts, the revenue deficit during April-January at Rs 4.05 lakh crore works out to 114.4 per cent of the Budget estimate. It was 87.8 per cent in the corresponding period of the last financial year.
 
The total revenue receipt till January was Rs 10.09 lakh crore, or 73.3 per cent of the Budget estimate, lower than 77.2 per cent recorded in the year-ago period.
 
The major decline was witnessed in non-tax revenue, as the government got only 59.8 per cent (Rs 1.93 lakh crore) of the Budget estimate. During April-January 2015-16, the non-tax revenue collection stood at 91 per cent of that year’s Budget estimate. Tax revenue during April-January 2016-17, however, was higher at Rs 8.16 lakh crore, or 77.4 per cent of the Budget estimate, up from 73.8 per cent last year.