India’s fiscal deficit reaches 96% of FY18 target at the end of October
New Delhi: India’s fiscal deficit at the end of October hit 96.1% of the budget estimate for 2017- 18, mainly due to lower revenue realization and rise in expenditure.
In absolute terms, the fiscal deficit — the difference between expenditure and revenue — was Rs5.25 trillion during April-October of 2017-18, according to data of the Controller General of Accounts (CGA). During the same period of 2016-17, the deficit stood at 79.3% of the target.
For 2017-18, the government aims to bring down the fiscal deficit to 3.2% of GDP. Last fiscal, it had met the 3.5% target.
The CGA data showed that the government’s revenue receipts were at Rs7.29 lakh crore in the seven months of the current fiscal, which work out to 48.1% of the budget estimate (BE) of Rs15.15 trillion for the entire year. The receipts, comprising taxes and other items, were at 50.7% of the target in the year-ago period.
As per the data, the government’s total expenditure was Rs12.92 lakh crore at October-end, or 60.2% of the budget estimate. It was 58.2% of the budget estimate a year ago.
Capital expenditure during April-October of 2017-18 was only 52.6% of the BE compared to 50.7% in the same period of the previous fiscal. Revenue expenditure, including interest payment, was 61.5% of the BE during April-October 2017-18. This compares with 59.2% a year earlier.