BUSINESS

India's fiscal deficit hits 99% of full-year target in Nov

Source:PTI
December 31, 2014 18:42 IST

Reflecting tight financial position of the central government, fiscal deficit at Rs 5.25 lakh crore as of November-end almost touched 99 per cent of the full year target of Rs 5.31 lakh crore.

As per the data released by Controller General of Accounts today, the fiscal deficit during April-November period was 98.9 per cent of the 2014-15 estimate, mainly because of subdued revenue realisation.

The government is committed to restricting the fiscal deficit at 4.1 per cent of the GDP during the current financial year, the lowest in seven years, and has taken several steps towards it.

The fiscal deficit -- the gap between government expenditure and revenue -- during the same period last year was 93.9 per cent of that year's target.

The data revealed that government's net tax revenue collection till November end was Rs 4.13 lakh crore or 42.3 per cent of the Rs 9.77 lakh crore estimated for the whole year.

The tax mop-up was slightly higher (44.8 per cent) during the same period last year.

Total receipts (from revenue and non-debt capital) during the eight months of the year was Rs 5.49 lakh crore or 43.4 per cent of the target, lower than 45.6 per cent collected in corresponding period 2014-15.

Plan expenditure of the government during the period was Rs 2.93 lakh crore (51.1 per cent) and non-Plan expenditure was Rs 7.8 lakh crore (64 per cent), the data said.

The fiscal deficit was over Rs 5.08 lakh crore or 4.5 per cent of GDP in 2013-14. It was 4.9 per cent in 2012-13.

The government had put in place a fiscal consolidation roadmap as per which the fiscal deficit has to be brought down to 3 per cent of the GDP by 2016-17.

To reduce the fiscal deficit to the seven-year low level, the government has announced a slew of austerity measures aimed at cutting non-plan spending by 10 per cent.

Illustration: Uttam Ghosh/Rediff.com

Source: PTI
© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Recommended by Rediff.com

NEXT ARTICLE

NewsBusinessMoviesSportsCricketGet AheadDiscussionLabsMyPageVideosCompany Email