New Delhi: The fiscal deficit rose by 73
per cent to Rs 3.06 lakh crore in the first eight months of
the fiscal against Rs 1.77 lakh crore a year ago, as the
Government cut taxes and stepped up expenditure to stimulate
the economy hit by the global financial crisis.
At this level, fiscal deficit has already touched 76.4
per cent of the budgeted estimate at Rs 4.01 lakh crore for
the entire fiscal.
To spur economic activity, the Government initiated
massive spending programmes and slashed duties from December
last year. This has, in fact led, to revision of fiscal
deficit from the estimated 2.5 per cent of GDP last year to
six per cent this fiscal.
The Centre`s expenditure stood at Rs 6.21 lakh crore,
while receipts were just Rs 3.15 lakh crore till November,
leading to fiscal deficit of over Rs 3 lakh crore.
In fact, the Government has pegged total expenditure at
record level of over Rs 10 lakh crore this fiscal, 60 per cent
of which has already been incurred till November.
Of the more than Rs 6-lakh crore expenditure incurred by
the Government, 72 per cent is accounted by non-Plan outgo
including interest payments.
The Government`s tax collections at Rs 2.32 lakh crore
contributed the most to its kitty.
Meanwhile, the revenue deficit, which is the excess of
revenue expenditure like those in salaries over revenue
income, rose to Rs 2.58 lakh crore till November, an increase
of 82 per cent over the last year`s corresponding revenue
deficit of Rs 1.41 lakh crore.
The revenue deficit was 91.2 per cent of the annual
budget estimate of Rs 2.83 lakh crore for 2009-10.