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Led by robust growth in tax revenue, the Centre’s balance sheet continued to be under control in the first three quarters of 2015-16, with the fiscal deficit at 88 per cent of the full year’s target.
The fiscal deficit at the end of December 2015 was ₹4,88,185 crore or 87.9 per cent of the Budget Estimate (BE), according to data released by the Controller General of Accounts on Friday.
It had exceeded the full year target to touch 100.2 per cent in the same period a year ago and was at the same level of 87 per cent in November 2015.
Similarly, the revenue deficit, remained in check at ₹3,22,234 crore or 81.7 per cent of the BE between April and December 2015. It was 106.2 per cent of the full year target a year ago. The improvement is largely due to the tax collections with both the corporate tax and excise duty mop-up at an all-time high in December.
The Centre collected ₹1,01,681 crore as corporate tax during the month. Excise duty collections stood at ₹25,096 crore, following six rounds of hike of the levy on fuel.
On the whole, tax revenue was at ₹6,22,247 crore or 67.6 per cent of the full-year target between April and December 2015 against 55.8 per cent a year ago. The Centre’s total receipts also grew to ₹8,25,812 crore or 67.6 per cent of the BE.
Expenditure in check Meanwhile, as the Centre tries to provide a fiscal stimulus, its total expenditure was on the higher side, but well within check at ₹13,13,997 crore or 73.9 per cent of the total expenditure Bill of ₹17,77,477 crore for 2015-16.
Of this, the Plan expenditure during the period was ₹3,45,978 core, 74.4 per cent of the BE, as against 61.3 per cent a year ago.
The non-Plan expenditure between April and December 2015 was ₹9,68,019 crore, or 73.8 per cent of the full fiscal estimate — roughly the same level as the year ago.
Analysts feel the Centre’s fiscal deficit target of 3.9 per cent of Gross Domestic Product for 2015-16 is well within reach.
“Both the revenue and fiscal deficits for the first three quarters of 2015-16 are considerably lower than the year-ago levels, which is encouraging. Even as low disinvestment inflows relative to the budgeted level remain a risk, the probability of a slippage relative to the absolute fiscal deficit target of ₹5.6 trillion in the 2015-16 BE appears muted,” said Aditi Nayar, Senior Economist, ICRA.
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