Deficit surges two-fold to Rs 2.7 lakh cr

The deficit was Rs 1.5 lakh crore in April-August period of 2010.

The fiscal deficit, the gap between overall expenditure and receipts, in the first five months of the financial year is over 66 per cent of the Budget estimate of Rs 4.12 lakh crore for 2011-12, as per the latest data of the Controller General of Accounts (CGA).

The rise in Centre’s fiscal deficit is on account of lower tax mobilisation compared to the same period last fiscal. The tax refund has brought down the net revenue collection.

The revenue receipt stood at Rs 1.88 lakh crore during the period against the Budget Estimate (BE) of Rs 7.89 lakh crore for the entire fiscal. This is 23.9 per cent of the BE.

At the same time, the non-tax revenue collection has declined sharply to 34.8 per cent compared to 102.8 per cent in the same period a year ago.