Fiscal Deficit Stands At 41.2% In Apr-May Of Year''s Target

Robust revenue receipts, predominantly from taxes, and cut expenditure enabled the Centre to restrain fiscal deficit during the first two months of 2007-08 to 41 per cent of this financial year''s target against 48.5 per cent in April-May last year. Fiscal deficit was at Rs 62,135 crore, which is 41.2 per cent of the budget estimate of Rs 1,50,948 crore for entire 2007-08, according to figures released by the Controller General of Accounts. However, revenue deficit, which is excess of current expenditure over current receipts, is higher at 83 per cent of the budget estimates for the current fiscal against 81 per cent during the first two months of last year. This is despite revenue receipts standing at Rs 25,899 crore, constituting 5.3 per cent of this year''s target of Rs 4,86,422 crore against 4.8 per cent in April-May last year. Revenue expenditure was also pruned effectively -- non- plan revenue expenditure at Rs 65,876 crore was 17.2 per cent of the estimates for this fiscal against 17.8 per cent last year, while plan revenue expenditure at Rs 19,358 crore was 11.1 per cent against 18.6 per cent last year. Over 83 per cent of revenue receipts in the first two months of this fiscal came from tax revenues, which stood at Rs 21,725 crore constituting 5.4 per cent of this year''s target of Rs 4,03,872 crore. In the first two months last fiscal, tax revenue constituted 4.6 per cent of that year''s budget estimates. Budget for this financial year targeted fiscal deficit to be contained to 3.3 per cent of GDP and revenue deficit to 1.5 per cent of GDP.