Fiscal deficit rises 4-fold in Apr-Jun

Written by Press Trust of India | New Delhi | Updated: Jul 31 2011, 08:13am hrs
The central governments fiscal deficit surged by over four-fold in the first three months of the current fiscal to R1.62 lakh crore on account of lower non-tax receipts.

The deficit was R40,196 crore in April-June, 2010.

The fiscal deficit, or the gap between overall expenditure and receipts in the first quarter of this year is almost 40% of the Budget estimate of R4.12 lakh crore for 2011-12. The sharp rise in Centres fiscal deficit is on account of 89% decline in non-tax receipts which went down to R12,221 crore in the first quarter of this fiscal compared to R1.15 lakh crore in the year-ago period.

Besides, there was a 6.3% decline in tax revenues at R78,699 crore during the period under review. The figure was R83,994 crore in the year-ago period.

As per the latest data of the Controller General of Accounts, the total receipts were R98,564 crore in April-June 2011, down by 51% year-on-year. The figure was R2.02 lakh crore in the three-month period in 2010. The government has set a fiscal deficit target of 4.6% of the GDP for the current fiscal.

However, non-tax receipts have been lower as the governments disinvestment programme for this year is yet to take off fully. The higher non-tax revenue in the first quarter of last fiscal was on account of auction of 3G spectrum.

Experts had said lower revenue collection on account of removing duties on petroleum products may take deficit to over 5%.