India meets fiscal deficit target, almost; expenditure cut offsets massive revenue shortfall

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Updated: May 31, 2019 6:35:42 PM

The Modi government just managed to meet the fiscal deficit target for FY19 as it reduced the expenditure spending to offset the shortfall in the revenue, the official data showed.

RTGS, Bank Customers, SBI, RTGS new time window, RBI notification on RTGS, NEFT, Real Time Gross Settlement, National Electronic Funds TransferThe revenue gap for FY19 stood at Rs 4.45 lakh crore as against the revised target of Rs 4.10 lakh crore.

The Modi government just managed to meet the fiscal deficit target for FY19 as it reduced the expenditure spending to offset the shortfall in the revenue, the official data showed. The fiscal deficit stood at 3.39 per cent of GDP, marginally lower than 3.4 per cent estimated in the revised estimates of the Budget, In absolute terms, the fiscal deficit at the end of March 31, 2019, stood at Rs 6.45 lakh crore as against Rs 6.34 lakh crore in the revised estimates. The revenue gap for FY19 stood at Rs 4.45 lakh crore as against the revised target of Rs 4.10 lakh crore.

The spending was recorded at Rs 23.11 lakh crore as against the revised target of Rs 24.57 lakh crore. The capital spending stood at Rs 3.03 lakh crore compared to revised aim of Rs 3.16 lakh crore. FY19 revenue spending was at Rs 20.08 lakh crore as against the revised aim of Rs 21.4 lakh crore, the data showed.

The fiscal deficit in the month of April was recorded at Rs 1.57 lakh crore, or 22.3 per cent of the budgeted target for the current fiscal year, the data showed. While the net tax receipts in the first month of the fiscal year stood at Rs 71,637 crore, the total expenditure was Rs 2.55 trillion, it also showed.

Also read: Unemployment confirmed at 45 year high in FY18; leaked NSSO report now official

“Since the government hasn’t done much spending in the first two months of fiscal, the numbers in June should be better in the month of June,” Soumya kanti Ghosh, Group Chief Economic Advisor, SBI told CNBC TV18.

Meanwhile, the fourth quarter GDP data for fiscal 2019 released by the CSO showed a 20-quarter low growth rate of 5.8 per cent. The full FY19 GDP growth was recorded at 6.8 per cent, the data showed. On the other hand, the Periodic Labour Force Survey FY18 showed that unemployment stood at 6.1 per cent in FY18, the highest level in at least 45 years.

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