Wednesday, Oct 01, 2014

Fiscal deficit touches 63% of full year target in first four months of FY’14

Written by Ens Economic Bureau | New Delhi | Posted: August 31, 2013 2:29 am

Raising further concerns over the government’s deteriorating finances,the Centre’s fiscal deficit in the first four months of 2013-14 touched nearly 63 per cent of its full year target while its revenue deficit was even higher at 73 per cent of the Budget estimate.

Data released by the Controller General of Accounts on Friday revealed that the Centre’s fiscal deficit between April and July 2013 stood at Rs 3,40,609 crore or 62.8 per cent of the full year target of Rs 5,42,499 crore on the back of slowing revenues. It was significantly lower at Rs 2,64,432 crore last fiscal.

Finance minister P Chidambaram’s promise to keep the fiscal deficit at 4.8 per cent of the GDP in 2013-14 is facing a challenge from the depreciating rupee along with hardening crude oil prices. On Thursday,oil minister Veerappa Moily said under recoveries on diesel and cooking gas had touched Rs 1,23,000 crore last month. The implementation of the Food Security Bill is expected to set back the Exchequer by at least Rs 20,000 crore this fiscal.

Meanwhile,the revenue deficit has touched Rs 2,77,378 crore or 73 per cent of the BE by July end 2013. It was lesser at Rs 2,14,718 crore in the same period a year ago.

The Centre’s total expenditure was largely in line at 31.3 per cent of the full fisc target or Rs 5,21,165 crore. Of this,Plan expenditure stood at Rs 1,49,738 crore in the period or 27 per cent of the BE while non-plan expenditure amounted to Rs 3,71,427 or 33.5 per cent of the full year target.

Total receipts,however,were lower than expected at Rs 1,80,556 crore between April and July 2013 amounting to just 16 per cent of the full fiscal target of Rs 11,22,799 crore.

In a reflection of the slowing economy,tax revenue collection was Rs 1,41,509 crore or 16.4 per cent of the full year target. Meanwhile,non debt capital receipts amounted to Rs 4,401 crore.

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