Fiscal deficit shot up to ₹3,26,323 crore or 61.1 per cent of the full-year target between April and June 2016 as expenditure outpaced revenue, raising concern over the Centre’s financial position as corporate tax collections are not as buoyant as expected and disinvestment receipts too have been less than robust till now.

The fiscal deficit was significantly lower at 42.9 per cent of the Budget Estimate (BE) a month ago and was 51.6 per cent of the full year target between April and June 2015.

Official data released on Friday revealed that the Centre’s revenue deficit too shot up to ₹2,82,049 crore or 79.7 per cent of the BE in the first quarter of the fiscal. It amounted to just 58.6 per cent of the full year target in the same period a year ago.

For 2016-17, the Centre has pegged its fiscal deficit at 3.5 per cent of the GDP and the government is confident of meeting the target. Indicating the government’s focus on public spending as well as improvement in tax collections, both total receipts and total expenditure were slightly higher than the levels in the same period last fiscal.

Total receipts amounted to ₹1,85,509 crore or 12.8 per cent of the BE in the first quarter of the fiscal, as against ₹1,44,298 crore a year ago.

This came almost entirely from revenue receipts, which totalled ₹1,80,787 crore as on June 30, 2016, amounting to 13.1 per cent of the BE. Revenue collections were ₹1,41,204 crore a year ago.

Meanwhile, total expenditure was ₹5,11,832 crore in the first quarter of the fiscal, which was 25.9 per cent of the full- year target. Total spending was ₹4,30,993 crore or 24.2 per cent of the BE a year ago.

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