Fiscal deficit to be below the budgeted 5.5 pc: FinMin Adviser

"Fiscal deficit, I expect will be below 5.5 per cent," Chief Economic Adviser Kaushik Basu told reporters here. The Reserve Bank had yesterday exuded confidence that the higher-than-expected revenue from the auctioning of 3G and BWA spectrum would keep the fiscal deficit within the target of 5.5 per cent of GDP in the current fiscal.

The Budget for 2010-11 estimates the fiscal deficit at Rs 3,81,408 crore, or 5.5 per cent of the Gross Domestic Product (GDP). Towards the end of the first quarter, the government had collected over Rs 1.06 lakh crore through the sale of spectrum (radio waves) for both 3G and Broadband Wireless Access (BWA) against the Budget target of Rs 35,000 crore.

During April-July 2010 period, the Centre's fiscal deficit stood at Rs 90,915 crore, which is nearly 24 per cent of the estimate for the current financial year. "Higher than expected realisations on 3G and broadband wireless access (BWA) auctions combines with buoyant tax revenues have virtually eliminated the risk of the fiscal deficit overshooting the targeted 5.5 per cent...," RBI said.

As per the government data, in the first four months of the current fiscal, non-tax revenue receipts were Rs 1,25,703 crore, 84.9 per cent of the full year target. During the corresponding period last year, non-tax revenue receipts were at 13.6 per cent of the estimate. On the other hand, tax revenue receipts during April-July period reached 21.1 per cent of 2010-11 estimate at Rs 1,12,821 crore. The overall revenue receipts target is pegged at Rs 5,34,094 crore for the current fiscal.

The total expenditure in the first four months of the current fiscal stood at Rs 3,32,700 crore, thereby reaching 30 per cent of the target for the full year. The plan expenditure during April-July period is at Rs 1,09,800 crore and non-plan expenditure stood at Rs 2,22,900 crore. The government's expenditure for the current fiscal is targeted at Rs 11,08,749 crore.

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