The country?s fiscal deficit stood at Rs 1.33 lakh crore in April-September 2010, which is 34.9% of the full year budget estimates (BE), as compared to 49.3% in the corresponding period of the previous year. Fiscal deficit target for this year has been budgeted at Rs 3.81 lakh crore, or 5.5% of GDP.
Fiscal deficit fell largely due to sharp rise in revenue receipts, which reduced government borrowing for this year in comparision to last year, data released by the Controller General of Accounts showed on Friday. Revenue receipts stood at Rs 3.98 lakh crore in the first six months of the current fiscal, a rise of 58.4% as against 39.85% in the same period last year. Tax revenue collections rose 43.7% to Rs 2.33 lakh crore in April-September 2010, mainly due to healthy indirect tax collections.
With a successful auction of 3G spectrum and broadband wireless access, the non-tax collections registered a growth of 111.3% at Rs 1.64 lakh crore in April-September 2010, as compared to a 41.9% growth achieved in the same period last year. Total government expenditure stood at Rs 5.37 lakh crore, accounting for 48.5% of the full year target as compared to 44% last year. The fiscal deficit, which is the excess of government expenditure over revenue, was financed mainly by market borrowing of Rs 1.87 lakh crore. Through National Small Saving Fund, the government financed Rs 30569 crore.
The government had comfortable cash position and maturity composition of Centre?s debt papers improves in Q2, the finance ministry said in a separate quarterly report on public debt. ?The gross issuance of treasury bills during the quarter was less than repayments by Rs 13,499 crore. The government plans to issue Rs 67,000-crore treasury bills in October-December 2010,? the report said.
The government?s total outstanding public debt rose 2.8% q-o-q to Rs 27.77 lakh at end-September 2010. This was at Rs 27,01 lakh crore at end-June 2010. Internal debt constituted 89.4% of public debt at the end of Q2, compared to 89.2% at end of Q1. The government?s outstanding internal debt at Rs 24,84,690 crore constituted 35.8% of GDP.