The government on Friday said the FY16 fiscal deficit target of 3.9% of the GDP has been achieved, but not before reducing Plan expenditure by Rs 7,197 crore from the revised estimate announced in the Budget. Official data released on Thursday had said that the Centre’s fiscal deficit reached 107.1% of the revised FY16 estimate in April-February.
In a statement, the finance ministry said the revised estimate for tax revenue of Rs 9.47 lakh crore is “expected to be fully met when the bank scrolls are fully accounted for” while the revised disinvestment target of Rs 25,000 crore has been achieved.
Plan expenditure was expected to be around Rs 4.7 lakh crore, which was higher than the budget estimate for 2015-16 and also higher than the actual plan expenditure of Rs 4.54 lakh crore in 2014-15, it said. The revised estimate of Plan expenditure for FY 16 was Rs 4.77 lakh crore.
“The government remains committed to the path of fiscal consolidation,” the ministry said.
On Thursday, the Centre reported that its fiscal deficit rose to Rs 5.73 lakh crore or 107.1% of the FY16 revised estimate in first 11 months of the year as compared to 117.5% of the corresponding target in the year ago period.
Usually, the government receives a substantial amount in tax as well as non-tax revenue in March, helping to correct the fiscal situation.
FinMin Says
–Fiscal deficit within budget target of 3.9% of GDP in FY16
–Plan expenditure to be around Rs 4.7 lakh crore, Rs 7,000 crore less than revised estimate
–Tax receipts estimate is expected to be fully met
–Revised disinvestment revenue target achieved