New Delhi: The country’s fiscal deficit touched 134.2 per cent of the full-year revised budgeted estimate (BE) at the end of February 2019, mainly due to tepid growth in revenue collections, official data showed. In absolute term, fiscal deficit for April-February 2018-19 was Rs 8.51 lakh crore as against the revised estimate (RE) of Rs 6.34 lakh crore for the entire year, according to Controller General of Accounts (CGA) data.
However, Economic Affairs Secretary Subhash Chandra Garg told reporters that the government is committed to restrict the fiscal deficit at 3.4 per cent of the GDP as envisaged in the Budget. The CGA data revealed that revenue receipts of the central government was Rs 12.65 lakh crore or 73.2 per cent of the revised budgetary estimate at February end. In the same period last fiscal, the revenue collection was 78.2 per cent of the estimates.
The government’s tax revenue stood at Rs 10.94 lakh crore and non-tax revenue was Rs 1.7 lakh crore. Total expenditure incurred by the government during April-February 2018-19 was Rs 21.88 lakh crore (89.08 per cent of RE), of which Rs 19.15 lakh crore was on revenue account and Rs 2.73 lakh crore on capital account. Out of the total revenue expenditure, Rs 5.01 lakh crore was on account of interest payments and Rs 2.63 lakh crore on major subsidies.
Meanwhile, the finance ministry in a statement said that Rs 5.96 lakh crore has been transferred to the state governments as devolution of share of taxes by the central government up to February, which is Rs 67,043 crore higher than the corresponding period of last year 2017-18.
Government Borrowing
The finance ministry said the government will borrow Rs 4.42 lakh crore in the first half of the fiscal 2019-20. As per the Union Budget, the gross borrowing was pegged at Rs 7.1 lakh crore for 2019-20, higher than Rs 5.71 lakh crore estimated for the ongoing fiscal. Briefing reporters on the borrowing programme for 2019-20 SC arg said gross borrowing will be Rs 4.42 lakh crore during April-September 2019-20.
Net borrowing would be Rs 3.4 lakh crore in the first half of the next fiscal. Gross borrowing includes repayments of past loans. Garg also said the government will stick to the fiscal deficit target of 3.4 per cent of the GDP for the current fiscal. The government raises funds from the market to fund its fiscal deficit through dated securities and treasury bills. In the Budget, the fiscal deficit target for 2019-20 was retained at 3.4 per cent of the GDP