Constrained by lower tax collection, the Centre’s fiscal deficit exceeded the budget estimate during first seven months (April-October) itself. Fiscal deficit is the difference between income and the expenditure.
According to data released by the Controller General of Accounts (CGA), fiscal deficit fro April-October period touched Rs 7.20 lakh crore. This is 102.4 per cent of the budget estimate of Rs 7.03 lakh crore. The only solace here is that this year deficit during first seven months is lower than corresponding period of last fiscal. Deficit for April-October period of 2018-19 was 103.9 per cent of the budget estimate.
Data shows total revenue collection is nearly 45 per cent of the budget estimate, while total expenditure was 59.4 per cent of the budget estimate.
The Government has repeatedly maintained that it will try to keep the deficit to budget estimate of 3.3 per cent (of GDP). However, many analysts believe that the deficit will go up from 3.5 per cent to 3.7 per cent.