April-Jan fiscal deficit at $86 bln, crosses full year target

Net tax receipts were at Rs 5.76 lakh cr in the first ten months of FY14

India's fiscal deficit in the first ten months of the 2013/14 financial year crossed the target for the whole year, putting pressure on the finance minister of Asia's third-largest economy to cut spending ahead of an election.

The fiscal deficit touched Rs 5.33 lakh crore during April-January, or 101.6% of the full year target, compared with 89.4% at the same point a year ago, government data showed on Friday.

In his interim budget on February 17, Finance Minister P Chidambaram said the fiscal deficit would not cross 4.6% of GDP, revising an earlier target of 4.8%.

Net tax receipts were at Rs 5.76 lakh crore in the first ten months of the current fiscal year to March 2014, while total expenditure was Rs 12.7 lakh crore.

Much tax collection happens in the last two months of the fiscal year and a large part of India's revenues come from non-tax sources. Chidambaram is likely to tighten spending in what is left of the year to meet his goal.