India's fiscal deficit in August crosses 96% of budget estimates
The government has estimated fiscal deficit of Rs 546,532 crore for FY18 - out of which it has reached at a deficit of Rs 525,045 crore by end of August.
India's fiscal deficit reached Rs 5,25,045 crore by end of August 2017 - 96.1% of the budgeted estimate (BE) for the financial year 2017-18 (FY18).
The government has estimated Rs 5,46,532 crore of fiscal deficit for FY18.
As per Controller General of Accounts (CAG) data, fiscal deficit in August stood at Rs 20,149 crore, compared Rs 14,333 crore in the similar month of previous year. Fiscal deficit during the same period of last year stood at negative 76.4%.
Fiscal deficit occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings.
India's revenue receipts stood at Rs 1,18,849 crore in August 2017 - totaling Rs 4,09,868 crore – 27% of BE.
On the other hand, total expenditure stood at Rs 1,42,030 crore in August - taking it to 40.5% of BE to Rs 9,50,447 crore.
On September 28, the finance ministry said that it will remain firm on its its borrowing and fiscal deficit targets for this fiscal, hinting that it has no plans to relax spending goals to prop up growth as of now.
During Union Budget 2017, the government had budgeted gross market borrowings of Rs 5.8 lakh crore ($88.57 billion) for FY18. Of this, 3.72 trillion rupees was raised in the first half of the year.
While, the government is committed to fiscal deficit target of 3.2% for FY18.