Q1 deficit falls 68%

The fiscal deficit, which represents excess government expenditure over its revenue, for the first quarter of the previous year was Rs 1,24,302 crore.

The major fall in fiscal deficit comes from a significant hike in revenue receipt of the Union Government, which saw a rise of 178 per cent to Rs 1,99,810 crore in the quarter.

The additional Rs 1,27,815 crore that the government collected this quarter, as compared to the year-ago period, comes mainly from non-tax revenue — at Rs 1,15,816 crore. Towards the end of the quarter, the government had collected a sum of over Rs 1.06 lakh crore through the sale of spectrum for both 3G and Broadband Wireless Access (BWA) against the budget target of Rs 35,000 crore. The first quarter fiscal deficit represents a mere 10.5 per cent of the budget estimate of Rs 3,81,408 crore for 2010-11, whereas the deficit in the year-ago period accounted for 31 per cent of the year’s estimate of Rs 4,00,996 crore. Reining in fiscal deficit assumes importance as stimulus measures provided by the govt.

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