The government finances were already under pressure before the Centre announced the fiscal stimulus package in early December, according to the latest fiscal deficit numbers released on Wednesday. The Centre?s fiscal deficit shot up to 132.4% of the Budget estimate to Rs 1,76,510 crore by November 2008, compared to a much lower 63.8% of the full fiscal target a year ago.

Revenue deficit has surged to an astronomical 256.2% of the BE to Rs 1,41,364 crore by end November 2008. It had amounted to a significantly lower 97.9% of the BE in the same period last fiscal. Significantly, till a month ago in October 2008,

the Centre?s revenue deficit had been at a reasonable 157.7% of the BE amounting to Rs 87,027 crore.

Primary deficit is at Rs 64,830 crore or a negative of 112.7% of the full year target as compared to 91.6% of the BE a year ago. The UPA in its mid term economic review has conceded that the fiscal deficit will rise to at least 5% of the GDP in 2008-09 on account of the heavy expenditure as a part of the fiscal stimulus package.

The Centre had estimated to bring down fiscal deficit to 2.5% of the gross domestic product and revenue deficit to 1% of GDP in 2008-09. While stating that reviving economic growth has to be given precedence over the FRBM targets, the UPA has taken Parliamentary approval for additional spending of nearly Rs 1,50,000 crore in two supplementary demand for grants, taking its annual Plan expenditure for 2008-09 to Rs 9 lakh crore.

Limiting its fiscal space further, tax revenues too have begun registering a slowdown, with direct tax collections rising at merely 25% while major indirect taxes like customs and excise duties slipping into the red.

Consequently, its tax revenue till end November is Rs 2,53,558 crore or 50% of the full fisc target, a little lesser than the 54.6% of the BE in the same period in 2007-08. Its overall revenue receipts till November 2008 too are also a tad lower than last fiscal. Revenue receipts are up 52.2% of the full fisc target at Rs 3,14,974 crore, marginally lesser than the 56.5% of the BE in the same period a year ago. The government?s non- tax revenue is at Rs 61,416 crore or 64.1% of the BE by end November 2008. In comparison it had amounted to 65.7% of the BE in the first seven months of last fiscal.

In fact, in an indication that the UPA?s fiscal headroom is severely restricted, the Centre?s total receipts just crossed the half way mark to rise by 51.4% BE to Rs 3,17,614 crore till November this year. In sharp contrast, its total receipts amounted to 59.5% of the BE at Rs 3,15,101 crore.

Meanwhile, its total expenditure has increased to Rs 4,94,124 crore or 65.8% of the full year target by November 2008. It was marginally lesser at 60.5% of the BE a year ago. Plan expenditure is up at Rs 1,36,130 crore or 55.9% of the BE as compared to 54.9% of the BE by November 2007. Non-Plan expenditure too is on the higher side at 70.5% of the full fiscal target amounting to Rs 3,57,994 crore by November this year. In comparison it had risen to 62.8% of the BE in the corresponding period a year ago.