Fiscal Deficit stood at Rs 4.34 lakh crore, or 105% of the Total Annual Target in April-January 2011

As per the data released by the Controller General of Accounts on 29 February 2012, fiscal deficit stood at Rs 4.34 lakh crore, or 105 per cent of the total annual target in the April-January period of 2011-12. The government had estimated the fiscal deficit for 2011-12 at 4.6 per cent of the Gross Domestic Product (GDP).

The fiscal deficit stood at 58.3 per cent of the budget estimates in the April-January period of during 2010-11.

The fiscal deficit thus surpassed the budgetary target for 2011-12 as a result of high borrowings by the government during the period as well as a dip in revenue collection. The figures reflect a slowdown of the economy.

The total receipts for the April-January 2011-12 period reached 67.1 per cent of the annual target at Rs 567101 crore. Total expenditure reached almost 80 per cent of the budget estimate (BE) at Rs 1002034 crore.

Non-plan expenditure on the other hand for the 10-month period was Rs 708073 crore at 86.8 per cent of the budgetary estimate while plan expenditure was Rs 293961 crore at 66.6 per cent.

Tax collection & revenue

Tax collection during April-January 2011-12 stood at Rs 458,567 crore or 69.5 per cent of the BE. The collection during the corresponding period in 2010-11 was 92 per cent of the BE.

Revenue deficit during the period was Rs 334383 crore or 108 per cent of BE. In the April-January period of 2010-11 the revenue deficit was 56.3 per cent.

The government in 2011 had managed to contain fiscal deficit at 4.7 per cent of GDP as against 5.1 per cent budget target. The government’s success in comtrolling fiscal deficit has been attributed to windfall gains through auction of 3G spectrum for about Rs 1.06 lakh crore and disinvestment. However experts opined that in 2012, in the absence of a scope for any windfall gain and economic growth pegged at 6.9 per cent, the government will face an uphill task to get its fiscal consolidation plans into shape.