JOIN USGovt fiscal position improves during April-December
Despite maintaining a healthy spending, the government’s financial position improved in the last nine months with the fiscal deficit for April-December coming at Rs 4,88,185 crore, or 87.9 per cent, of the Budget estimate.
Last year, during this period, the deficit was 106.2 per cent.
The revenue deficit too remained in check at Rs 3,22,234 crore or 81.7 per cent of the Budget estimate, in the April-December period. It was 106.2 per cent of the full-year target in the corresponding period, a year ago.
The improvement in financial position has been on the back of lower oil prices, higher indirect tax revenue collection, higher dividend by the Reserve Bank of India this year, and other non-tax revenues, which showed a robust growth. State-owned companies too paid higher dividend to the centre, this year.
This is the first time that fiscal deficit has remained lesser than the Budgetary target in the first three quarters of a financial year.
In the past many years, fiscal deficit in April-December had always breached the Budget target, forcing the government to cut the expenditure drastically.
According to the data released by the Controller General of Accounts, tax revenue was at Rs 6.22 lakh crore. The full-year target is Rs 9.19 lakh crore. Total receipts from revenue and non-debt capital of the government in April-December came in at Rs 8.25 lakh crore, as against Budgetary estimates of Rs 12.21 lakh crore.
The government’s Plan expenditure during the period was Rs 3.45 lakh core, 74.4 per cent of the full-year estimate. The plan expenditure at Rs 3.45 crore is highest in many years.
Marching North
The improvement in financial position is due to lower oil prices and higher indirect tax revenue kitty
The revenue deficit remains in check at Rs 3,22,234 crore or 81.7 per cent
State-owned companies pays higher dividend to the Centre
The data released by the Controller General of Accounts shows tax revenue at Rs 6.22 lakh crore