Mumbai: The finance ministry on Saturday ruled out more market borrowings during the remaining period of the fiscal saying it will stick to 5.3% fiscal deficit target.
“We will not go into the market for additional borrowings this fiscal and will be able to keep the fiscal deficit at 5.3% of GDP,” economic affairs secretary Arvind Mayaram said here this evening. He was talking to reporters on the sidelines of an event to launch the Financial Technologies-promoted MCX-SX, which is the third major stock exchange.
The government has initially budgeted a marketing borrowing target of Rs5,13,590 crore or 5.1% fiscal deficit of GDP for this fiscal, which was later revised upwards to 5.3% in October, increasing the market borrowing by another Rs23,000 crore.
On the revenue side, with three divestments, the government has already met nearly 73% (around Rs21,700 crore out of Rs30,000 crore) of its divestment target and is confident of meeting nearly 90% with three more sell-offs in Steel Authority of India Ltd (SAIL), National Aluminium Co Ltd (Nalco) and Minerals and Metals Trading Corp (MMTC) in the remaining days of the fiscal.
With the government in expenditure cutting mode, various ministries are bracing for reduction in their annual budgets for the year 2013-14 which could be even up to 24% of this fiscal. The Controller General of Accounts (CGA) data revealed that during April-December 2012, the revenue receipts stood at Rs5,70,536 crore or 61% of the estimate. The performance on revenue mop up front during the period at 61% of the estimate was lower than 63.1% achieved during April-December 2011.
The government is eyeing Rs935,685 crore revenue this fiscal. Tax collection (Rs4,84,156 crore) slipped to 62.8% of the Budget estimate compared to 63.3% achieved in the same period last year. Government receipts during the period totalled Rs5,86,424 crore while the expenditure worked out at Rs9,91,123 crore.