Larger direct tax refunds and an unrestrained rise in non-plan expenditure have widened the government's fiscal deficit in the first month (April) of 2011-12, compared to the same month a year ago.
Fiscal deficit stood at Rs 74,661 crore in April, representing over 38 per cent growth over the same month's figure in 2010-11.
But, the correct way to compare the figures would be to take them as percentage of budgetary estimates.
The actual fiscal deficit was 18.1 per cent of the Rs 4.13-lakh-crore (Rs 4.13 trillion) target set for the current financial year. In April last year, the deficit was 14.2 per cent of the budget estimates for the entire 2010-11.
Higher refunds have depressed tax receipts to Rs 3,774 crore (Rs 37.74 billion) from Rs 10,062 crore (Rs 100.62 billion) in April 2010.
The Income Tax Department cleared refunds to the tune of Rs 23,000 crore (Rs 230 billion) in direct taxes in April.
This led to negative net collections from corporate tax to the tune of Rs 3,510 crore (Rs 35.1 billion) against a positive mop-up of Rs 4,085 crore (Rs 40.85 billion) last year.
Personal income tax collections were slightly higher at Rs 11,024 crore (Rs 110.24 billion), compared to Rs 10,277 crore (Rs 102.77 billion) last year.
However, indirect tax collections were up around 43 per cent to Rs 14,981 crore (Rs 149.81 billion) in April, compared to figures for same month last year.
Excise duty receipts were up at Rs 452 crore (Rs 4.52 billion), against negative mop-up of Rs 323 crore (Rs 3.23 billion) last year.
Similarly, customs duty collections were up 38 per cent at Rs 11,976 crore (Rs 119.76 billion) and services tax mobilisation was higher by around 20 per cent at Rs 2,553 crore (Rs 25.53 billion).
Of this revenue, the Centre devolved around Rs 19,082 crore (Rs 190.82 billion) to states.
The Centre's non-plan expenditure rose by over 45 per cent to Rs 70,123 crore (Rs 701.23 billion).
The government's total receipts stood at Rs 12,469 crore (Rs 124.69 billion) in April, while expenditure was at Rs 87,130 crore (Rs 871.3 billion), leaving the fiscal deficit figure.
The Centre was able to rein in fiscal deficit at 4.68 per cent of the gross domestic product during 2010-11, much lower than the projected 5.1 per cent in the revised estimates.
In absolute terms as well, the fiscal deficit was just 92 per cent of the pegged Rs 4 lakh crore (Rs 4 trillion) for the last financial year.
The actual figures stood at Rs 3.69 lakh crore (Rs 3.69 trillion).
The government aims to cut fiscal deficit to 4.6 per cent of GDP in this financial year.
The Centre's revenue deficit, the excess of current receipt over current expenditure, was up 19.70 per cent at Rs 60,615 crore (Rs 606.15 billion) in 2010-11.
