India’s fiscal deficit has breached its target for 2016 – 17 in ten months on account of lower non-tax revenues. As per government data, India’s fiscal deficit in the first 10 months to January was 5.64 lakh crore, or 105.7% of the budgeted target for the financial year ending in March 2017. The fiscal deficit was 95.8% of the full-year target during the same period a year ago.
The government had budgeted a fiscal deficit of Rs 5,33,904 crore for the current financial year ending March. As per data released by the Controller General of Accounts, the revenue deficit during April to January at Rs 4.05 lakh crore works out to 114.4 % of the budget estimate. It was 87.8% in the corresponding period of the last financial year.
The April-January net tax collection was Rs. 8.16 lakh crore, which was 75% of the revised estimate for the full year, in the corresponding period a year ago, which stood at Rs. 6.79 lakh crore or 71.65% of that year’s target. The strong performance in tax revenue was primarily due to central excise and improvement in personal advance tax payment post-demonetization.
The data showed government’s plan expenditure during the period was Rs 4,43,354 crore and non-plan expenditure stood at Rs 11,74,303 crore.
The federal government repeated earlier this month that it would meet the 2016/17 fiscal deficit target of 3.5% of GDP, and had also set the next fiscal year’s target at 3.2% of GDP.