India’s fiscal deficit touched 94.7% of the budgeted target during the April to August period, Mint reported on Tuesday, citing data released by the Controller General of Accounts. However, it remained lower than what it was during the same month last year, when the government had exhausted 96.1% of the deficit.
A fiscal deficit occurs when the government spends more than the revenue it generates.
This comes more than a week after Union Finance Minister Arun Jaitley said the government would end the current fiscal year without any cuts and was confident of meeting the 3.3% fiscal deficit target.
The total expenditure for the April to August period increased to Rs 10.70 lakh crore, or 43.8% of the target while revenue receipts for the same period stood at 26.9% of the target at Rs 4.64 lakh crore. According to the Controller General Of Accounts, the revenue deficit crossed the budget estimate at 113.8% in the same period.
“The market will continue to monitor the likelihood of meeting the budgeted targets for revenues related to GST, dividends and profits, and disinvestment, and assess whether outlays required for revised minimum support prices, the National Health Protection Scheme, fuel and other subsidies, and bank recapitalisation would prove to be adequate,” Aditi Nayar, principal economist at investment information company ICRA Ltd, told Mint.