The Centre’s fiscal deficit remained high in the first eight months of the financial year as gross tax revenues remained somewhat muted in November. This is the first set of official data on government finances since the decision to demonetise high value currency on November 8.
The Centre’s fiscal deficit amounted to ₹4,57,996 crore or 85.8 per cent of the Budget Estimate between April and November 2016. It was slightly lower at 79.3 per cent of the full fiscal target in October 2016. The fiscal deficit was 87 per cent of the Budget Estimate in November 2015.
The revenue deficit shot up to ₹3,48,211 crore or 98.4 per cent of the full year target by November 30. It stood at 87.5 per cent of the Budget estimate a year ago but was 92.6 per cent of the target in October 2016.
Net tax revenue was relatively robust at ₹6,21,172 crore or 58.9 per cent of the Budget Estimate between April and November 2016. It stood at ₹5,30,015 crore or 50.5 per cent of the target till a month ago.
However, a month-to-month comparison revealed that gross collections in November 2016 was ₹1,14,396 crore , which was lower than in October 2016 when the mop-up was ₹1,23,191 crore. However, gross tax revenue in November 2015 was much lower at ₹73,993 crore.
A similar trend was evident in gross collections of corporate tax, personal income tax and service tax where the receipts in November were lower than that in October 2016. However, on an annual basis, the collections were much higher compared to November 2015.
Gross corporate and income tax collections have been on a downward trend after September this year. Finance Minister Arun Jaitley on Thursday had said tax collections have remained robust despite demonetisation. Referring to recent data (till December 19 for direct tax) and (November 30 for indirect tax), the Minister had stressed that there has been an increase in collections on a year to year basis.
Meanwhile, the data on government accounts which was released by the Controller General of Accounts on Friday revealed that revenue receipts amounted to ₹ 7,96,123 crore or 57.8 per cent of the full year target between April and November 30 as against 55.9 per cent of the Budget estimate till November 2015.
Total expenditure was on track at ₹12,86,681 crore or 65 per cent of the target in the first eight months of the fiscal, as against 64.3 per cent of the estimate in the corresponding period a year ago. While Plan Expenditure amounted to ₹3,64,189 crore or 66.2 per cent of the full year target, while Non-Plan Expenditure ₹9,22,492 crore or 64.6 per cent of the target in the period.