India's budgetary fiscal deficit for the April-August 2019-20 period came in at 78.7 per cent, or Rs 5.538 lakh crore, of the budget estimates (BE), official data showed on Monday.
In the biggest reduction in 28 years, the government on Friday slashed corporate tax by almost 10 percentage points as it looked to pull the economy out of a six-year low growth and a 45-year high unemployment rate by reviving private investments with a Rs 1.45-lakh crore tax break.
Pakistan has suffered yet another setback with its economy plunging into a deep crisis. Pakistan's frightening situation can be clearly seen as it saw record high fiscal deficit but the country's Prime Minister and the entire leadership is busy issuing threats of war and jihad against India after the abrogation of Article 370 in Jammu and Kashmir.
While presenting interim Budget 2019-20 in February, the government had pegged fiscal deficit target at 3.4 per cent.
The fiscal deficit or gap between expenditure and revenue, was Rs 3,66,157 crore, as per data released by the Controller General of Accounts (CGA).
Fiscal deficit for the month of April was at Rs 1,57,048 crore which is 22 per cent of the budgeted estimate for the year 2019-20, slightly lower than what it was in the same period a year ago and as a percentage to the GDP, the fiscal deficit is at 0.75 per cent, Department of Expenditure (DoE) figures showed.
The fiscal deficit for 2018-19 came in at 3.39 per cent of GDP, marginally lower than 3.4 per cent estimated in the revised estimates of the Budget, mainly due to increase in non-tax revenue and lower expenditure.
Claiming that the Narendra Modi government's efforts during its remaining tenure cannot revive the "perilous condition" of the Indian economy, P. Chidambaram said the Centre might not able to achieve its set fiscal deficit target of 3.3 per cent.
Meeting the fiscal deficit target of 3.3 per cent of GDP for the current fiscal could be a challenge for the government, given the shortfall in GST collections, rising expenditure and slowing factory output, say experts.
The data furnished by the Controller General of Accounts (CGA) showed that the fiscal deficit during the corresponding eight months of the previous fiscal was 112 per cent.
The data furnished by the Controller General of Accounts (CGA) showed that the fiscal deficit during the corresponding seven months of the previous fiscal was 96.1 per cent.
Garg said that the government is discussing ways to fix appropriate economic capital framework of RBI.
The government's finances have shown improvement in July with fiscal deficit at 86.5 per cent of the Budget Estimate (BE), mainly on account of higher revenue collection, as per official data.
Data furnished by the Controller General of Accounts (CGA) showed that the fiscal deficit during the corresponding four months of the previous fiscal was 92.4 per cent.
Consistent dollar demand from banks and importers, mainly oil refiners, following higher crude oil prices kept the rupee under pressure.
Interim Finance Minister Piyush Goyal assured that government will maintain stability in the economy and meet all economic parameters fixed by it
The fiscal deficit target for the last financial year was revised upwards to 3.5 per cent of the GDP from original projection of 3.2 per cent, following GST implementation and deferment of spectrum auction.
Official data released by the Comptroller General of Accounts (CGA) today showed that during April-January, the capital expenditure during the period stood at Rs 2.64 lakh crore.
The government has revised its 2018-19 fiscal deficit projections to 3.3 per cent of GDP and for the current fiscal to 3.5 per cent of GDP, against original targets of 3 per cent and 3.2 per cent, respectively.
Calling this year's upward revision of fiscal deficit target to 3.5 per cent from 3.2 per cent a "one-off aberration", Subhash Chandra Garg said the economy is well on its path of fiscal consolidation despite a "small pause of a year"
Top News
