Business Economy

Fiscal deficit touches 61.4% of estimate

The government’s fiscal deficit touched ₹4.32 lakh crore for the June quarter, which is 61.4% of the Budget Estimate for 2019-20 fiscal.

In absolute terms, the fiscal deficit, or the gap between expenditure and revenue, was ₹4.32 lakh crore at June-end, as per the data released by the Controller General of Accounts (CGA).

The fiscal deficit was 68.7% of the 2018-19 Budget Estimate in the year-earlier period. The government estimates the fiscal deficit to be at ₹7.03 lakh crore during 2019-20.

The government aims to restrict the fiscal deficit to 3.4% of the GDP (gross domestic product) in the current fiscal, the same as last financial year.

The CGA data showed that revenue receipts of the government during April-June 2019-20 was 14.4% of the Budget Estimates (BE). It was 15.5% of BE in the year-ago period.

In absolute terms, revenue receipts stood at ₹2.84 lakh crore at June-end 2019. During the entire year, the revenue receipts have been pegged at ₹19.77 lakh crore.

The capital expenditure was 18.8% of the BE. This compares with 29% in the year-ago period, the CGA said.

Total expenditure during April-June period stood at ₹7.21 lakh crore, or 25.9% of the BE. It was 29% of the BE in the corresponding period last fiscal. The government had pegged its total expenditure during the fiscal ending March 2020 at ₹27.84 lakh crore.

The CAG said the fiscal deficit figure shown in monthly accounts during a financial year is not necessarily an indicator of fiscal deficit for the year as it gets impacted by temporal mismatch between flow of not-debt receipts and expenditure up to that month on account of various transitional factors both on receipt and expenditure side.

Source: thehindu.com

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