NEW DELHI: The government has run up fiscal deficit of 92.3% of its budget estimates in the first nine months of the current year, primarily due to lukewarm tax collections. The figures indicate that the government will not be able to meet its budgeted fiscal deficit target of 4.6% for the current fiscal.
Data released on Tuesday showed fiscal deficit during the period April to December was 3.81 trillion. During the same period last financial year, the fiscal deficit was 44.9% of the budgeted target.
The Reserve Bank of India had in its recent monetary policy review, put out a red flag on the lack of fiscal consolidation measures being taken by the government.
After the numbers were released C Rangarajan, chairman to the Prime Minister's Economic Advisory Council, said that government will not be able to stick to its budgeted fiscal deficit target.
The centre has managed to raise 5.2 lakh crore in revenue during the period, which is 61% of the budgeted target for the entire fiscal. With only three months left in the current fiscal the government is unlikely to meet its revenue target of 8.4 lakh crore.
Net tax revenue collections stood at 4.2 lakh crore, 63.3% of the budgeted target while total expenditure was at 8.96 lakh crore during the April-December period.
Net tax revenues were up by 12.2 % in December with corporate tax showing a meagre increase of 6% for the first nine months compared to the corresponding period last year, while personal tax showed a higher increase of 16.4%.
Excise collections were up by only 8.12% during the period.
Source : economictimes.indiatimes.com