Fiscal deficit till September at 49% of full-year target

Written by fe Bureaus | New Delhi | Updated: Oct 31 2009, 06:51am hrs
Improved tax collections, coupled with the austerity drive, seem to be bearing fruit, with government finances looking much healthier now. The Centres fiscal deficit till September amounted to just Rs 1,97,775 crore or 49.3% of the total fiscal target of Rs 4,00,996 crore. The figure stood at a much higher 77% of the Budget estimate till September end, 2008.

Similarly, the Centres revenue deficit totalled Rs 1,64,983 crore or 58.4% of the Budget estimate till September 2009, according to official figures released on Friday. The revenue deficit amounted to 141.9% of the Budget estimate in the same period last year. The Centres total revenue receipts were at 39.8% of the target estimate of Rs 2,44,471 crore during the period. The tax revenue amounted to 39.2% of the Budget estimate at Rs 1,85,668 crore till September this fiscal.

However, despite the average revenue mop-up, indirect tax mop-up has begun to show an improvement. Despite the 2% cut in its rate, service tax collections have regained almost the same growth rate as that in 2008-09. In September 2009, service tax receipts amounted to Rs 4,297 crore, just 9% lower than September 2008. Collections from customs duty and excise duty in September 2009 have registered an increase of 3.69% and 0.15, respectively, compared to August 2009.

Meanwhile, non-tax revenue during the first six months of the financial year was at 41.9% of the estimated Rs 58,802 crore during the fiscal, compared to 44.5% a year ago.

The Centres total expenditure in the first six months of the fiscal amounted to 44% of the Budget estimate at Rs 4,48,848 crore. Plan expenditure till September 2009 stood at 39% of the estimated Rs 1,26,777 crore - lower than the 44.6% that was clocked a year ago. In the non-Plan expenditure segment, the Centre has made an expenditure of 46.3% at Rs 3,22,070 crore.