The central government’s fiscal deficit at the end of October touched 4.75 lakh crore, or 89.6% of the budget forecast for 2014-15 as muted tax collections dragged down the overall revenue receipts.
The fiscal deficit was recorded at 84.4% in the April-October period a year ago, according to data released by the Controller General of Accounts
on Friday.
Net tax receipts in the first seven months of the current fiscal stood at over R3.68 lakh crore, or 37.7% of the original estimate.
Total expenditure of the central government during the period was over R9.62 lakh crore or 53.6 % of the estimates for the entire 2014-15.
The government has set a fiscal deficit target of R5.31 lakh crore or 4.1% of GDP, the lowest in seven years for 2014-15.
This gap between government spending and revenue met through borrowing was R5.08 lakh crore or 4.5 % of GDP in 2013-14. The government wants to bring it down to 3% of the GDP by 2016-17.
Revenue deficit of the centre in the April-October period shot up to a worrying R3,72,634 crore or 98.5 % of the full-year target.
The data puts further pressure on the government to balance its books, which has already imposed an austerity drive and called for a 10% cut in non-plan spending, including a ban on five star hotels and first class travel.
However, Union finance minister Arun Jaitley has till now maintained that the fiscal deficit target of 4.1% of GDP in 2014-15 would be achieved.