April-May fiscal deficit at Rs 2.4 lakh crore

Written by fe Bureau | New Delhi | Updated: Jul 1 2014, 05:36am hrs
The Centre's fiscal deficit for the first two months of FY15 was about Rs 2.41 lakh crore, or 45.6% of the full year target of Rs 5.28 lakh crore, largely due to a spurt in revenue expenditure.

Pending oil subsidy, of Rs 35,000 crore, for FY14 was released in May.

For the corresponding period last fiscal, the fiscal deficit had stood at 33.3% of the full year target.

For April-May, total non-plan spending was Rs 2.20 lakh crore, or 18.3% of the FY15 target of Rs 12.08 lakh crore, compared with 13.4% of the full-year estimate in the same period last fiscal. Revenue receipts were Rs 38,505 crore or 3.3% of the full fiscal target of Rs 11.67 crore. For the same period in FY14, revenue receipts were 3.4% of the full year target.

The oil subsidy to be borne by the Centre for FY15 was estimated at Rs 63,427 crore in the interim Budget in February. In two installments, the amount rolled over from last fiscal of over Rs 35,000 crore was paid in May, leaving only Rs 28,427 crore for the current fiscal and this, even after factoring in the regular diesel price increases and possible gradual hikes in prices of LPG, could prove to be an under-estimate.

Revenue deficit, arguably a better measure of government finances, stood at 53.6% of the budget estimate for FY15 in April-May as against 38.1% in the corresponding period a year ago.

Just for May, non-plan spending was Rs 1.23 lakh crore, compared to Rs 72,454 crore last year.

As per the government's latest fiscal consolidation road map, the fiscal deficit has to be brought down to 3% of the GDP by FY17.

The CGA data revealed that the total expenditure of the government during April and May was Rs 2.8 lakh crore or 15.9% of the entire year estimates. Plan spending was Rs 59,609 crore.