With a focus on advancing its expenditure to optimise efficiency in spending, the Centre’s fiscal deficit shot up to ₹4,41,685 crore or 80.8 per cent of the full year estimate between April and June 2017.
It was 61.1 per cent of the Budget Estimate in the same period a year ago.
Official data released on Monday showed that the revenue deficit exceeded the Budget Estimate by 19.1 per cent to ₹3,83,101 crore in the first three months of the fiscal. It was 79.6 per cent of the full year target by June 30, 2016.
“The sharp year-on-year rise in the Centre’s fiscal and revenue deficits in the first quarter of 2017-18 is not a source of alarm, with the upfronting of the Budget presentation and expenditure pattern, making the data incomparable,” said Aditi Nayar, Principal Economist, ICRA, while welcoming the robust 40 per cent expansion in the Centre’s capital expenditure in the period.
The fiscal and revenue deficit of the Centre was high even in May at 68.3 per cent and 100.5 per cent respectively of the Budget Estimate in line with the government’s focus to ensure that spending begins from the start of the financial year.
It was also evident in the revenue and expenditure data for June.
Receipts up While total receipts were marginally higher than the corresponding period a year ago at ₹2,09,046 crore or 13.1 per cent of the Budget Estimate, total expenditure had shot up to ₹6,50,731 crore by June end, amounting to 30.3 per cent of the full year target.
In June, revenue receipts amounted to ₹1,99,302 crore, or 13.1 per cent of the full year target. Of this tax revenue, was ₹1,77,337crore or 14.5 per cent of the Budget Estimate, in line with June last year.
In contrast, revenue expenditure shot up to nearly a third of the full year target to amount to ₹5,82,403 crore in the first quarter of the fiscal. It was 26.7 per cent of the Budget Estimate in the same period a year ago.
Capital expenditure also rose significantly to ₹68,328 crore or 22.1 per cent of the full year target between April and June this year.