Online BusinessFiscal deficit touches half of budget estimate in six months
The government"s fiscal deficit has reached almost half of the full-year estimate in the first six months of FY10.
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The fiscal deficit for the six-month period stood at Rs 1,97,775 crore, which is 49.3 per cent of the total estimate of Rs 4,00,996 crore for this fiscal.
The fiscal deficit during the same period last year was at 77 per cent of the annual estimate. It swelled to 6.2 per cent of the Gross Domestic Product (GDP) last fiscal against budget estimates of 2.5 per cent.
As the economy came under the impact of global financial crisis, the government gave various stimulus packages which hit its tax kitty and raised expenditure, leading to fiscal deficit projection of 6.8 per cent of GDP for FY10.
The Centre"s total revenue collection was at 39.8 per cent of the target estimate of Rs 2,44,471 crore during the period. The revenue by way of tax collections — direct and indirect — was at 39.2 per cent of the estimates at Rs 1,85,668 crore till September this fiscal.
Besides, non-tax revenue during the first six months of the financial year was at 41.9 per cent of the estimated Rs 58,802 crore during the fiscal. During the same period last fiscal the collection in the form of non-tax revenue was at 44.5 per cent of the estimate.
On the expenditure front, the Centre has made planned expenditure of 39 per cent of the estimated Rs 1,26,778, lower than 44.6 per cent last year.