Despite its burgeoning fiscal deficit, the finance ministry is hopeful of meeting the fiscal deficit target of 4.1 per cent of the GDP in 2014-15 with improvement in its finances in the January to March quarter on the back of an expected pick-up in tax revenue realisation, receipts from spectrum auction and PSU stake sales.
“Fiscal deficit will not be an issue as 50 per cent of the tax revenue usually comes in the fourth quarter. We are also expecting revenues from spectrum auction and disinvestment to come in the fourth quarter,” sources said.
Data released by the Controller General of Accounts on Wednesday revealed that the Centre’s fiscal deficit stood at Rs 5,25,134 crore by November 30 or 98.9 per cent of its Budget Estimate of Rs 5,31,177 crore.
The finance ministry in its Mid Year Economic Analysis had conceded that the fiscal deficit target was overambitious and that tax revenues were over projected by Rs 1 lakh crore.