NEW DELHI, DEC 15: India said on Friday it expects to be able to stick to its fiscal deficit target of 5.1 per cent of GDP for this financial year despite lower revenues from sale of government equity in state-run firms.It has raised just over 40 per cent of its cumulative target of Rs 443 billion since 1991 when India launched economic reforms. Opposition from political groups, including parties in the government and labour unions, and adverse market conditions have hindered the programme.SILVER LINING: But buoyant tax revenues thanks to more efficient tax collection have come as a huge relief to the government trying to plug its gaping fiscal deficit. Tax receipts soared by 17.57 per cent year-on-year in the April to November period, boosted by an increase in direct tax collections. Total tax receipts during April-November were Rs 1,072.61 billion compared with Rs 912.29 billion a year earlier. Receipts in November alone were up 13.04 per cent higher than in the year-ago period.Lower government spending has also helped to raise the comfort level. Spending to the end of October was 45.5 per cent of the targeted Rs 3,384.87 billion for 2000/2001 compared with 51.4 per cent in the corresponding year earlier period.Official say austerity measures announced by the government and better management had helped contain government spending. Earlier in the year, all government departments, state governments and state-run firms were asked to reduce non-plan, non-salary spending by 10 per cent.
