New Delhi: Despite a substantial increase in transfer of surplus by the Reserve Bank of India (RBI) to the government, India’s fiscal deficit touched 94.7% of the budgeted target during the April-August period while revenue deficit crossed the budget estimate at 113.8% in the same period, showed data issued on Tuesday by the Controller General of Accounts (CGA).
In the same period last year, government had exhausted 96.1% of fiscal deficit and 113.8% of revenue deficit.
From a ₹ 30,659 crore surplus last year, RBI transfers jumped 63% to ₹ 50,000 crore this year.
“The market would continue to monitor the likelihood of meeting the budgeted targets for revenues related to GST, dividends and profits, and disinvestment, and assess whether outlays required for revised minimum support prices, the National Health Protection Scheme, fuel and other subsidies, and bank recapitalization would prove to be adequate," said Aditi Nayar, principal economist at ICRA Ltd.
Finance minister Arun Jaitley has sent a strong signal of fiscal prudence by committing to the fiscal deficit as well as capital expenditure targets. “Government is confident of meeting the 3.3% fiscal deficit target. Government spent 44% of budgeted capital expenditure till 31 August and there will be no cuts in capex by the end of this year," Jaitley said.