Fiscal Deficit surpasses Budget Estimates in April-December

The Indian government’s fiscal deficit has exceeded the budget estimate within the first nine months of the current fiscal, data showed Friday at a time it has recovered ground somewhat by earning over Rs.22,000 crore from disinvestment in Coal India.

Latest data by the Controller General of Accounts shows that deficit during April-December period was over Rs.532,000 crore as against the annual budget estimate of Rs.531,000 crore. Crossing 100 percent of the estimate in the first nine months compares with the figure of 95.2 percent during corresponding period of the previous fiscal.

On the revenue side, data showed that net tax revenue was 55.8 percent of the budget estimate as against 58.6 percent during corresponding period of 2013-14. Total expenditure was 68.9 percent of the budget estimate, compared to 69.9 percent in the same period of the previous financial year.

The government has set the target of containing the deficit to 4.1 percent of the Gross Domestic Product (GDP). The fiscal deficit has remained high despite international crude oil prices plunging to levels of $45 a barrel, that has otherwise helped reduce the country’s trade deficit. (IANS)