India's fiscal deficit overshoots budgeted estimate by 113.6% in Dec

 Fiscal deficit occurs when a government's total expenditure exceeds the revenue that it generates, excluding money from borrowings.

India's fiscal deficit overshoots budgeted estimate by 113.6% in Dec
By ZeeBiz WebTeam
Updated: Thu, Feb 01, 2018
05:08 pm
Mumbai, ZeeBiz WebDesk
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For nine months of Financial Year 2018, India's fiscal deficit stands at Rs 6,20,949 crore, overshooting the budgeted estimate (BE) target by 113.6%.
 
The government has estimated Rs 5,46,532 crore of fiscal deficit for FY18 which during the same period of the last year stood negative at 93.9%.
 
Surprisingly in December 2017, fiscal deficit stood at just Rs 8,844 crore, compared to Rs 43,254 crore in the same month of previous year. This indicator stood at Rs Rs 86,784 crore in November 2017 and Rs 26,383 crore in October 2017.
 
December month's data would be the lowest fiscal deficit numbers for the entire fiscal.
 
Fiscal deficit occurs when a government's total expenditure exceeds the revenue that it generates, excluding money from borrowings.
 
While fiscal deficit target surpasses the government's estimates, the target set for revenue receipts is yet to be achieved for FY18.
 
Revenue receipt stood at Rs 2,08,761 crore in December, totalling Rs 10,13, 622 crore so far in FY18. Target for this indicator has only been achieved by 66.9% compared to estimate of Rs 15,15,771 crore.
 
On the other hand, total expenditure arrived at Rs 2,20, 140crore in December, totalling up to Rs 16,98,955 crore till date in FY18. Thus, the government has managed to touch 79.1% of its BE, which has been set at Rs 21,46,735 crore.
 
Looking at the fiscal slippage, the finance minister during his Budget 2018 speech stated revised Fiscal Deficit estimates for 2017-18, Rs 5.95 lakh crore at 3.5% of GDP.
 
The government expects to bring this target down to 3.3% in the next fiscal (FY19).
 
For FY18, the ministry revised the estimate to Rs 15,05,428 crore-- lower compared to previous budgeted estimate of Rs 15,15,771 crore. While total expenditure estimate was revised to Rs 22,17,750 crore, higher from Rs 21,46,735 crore of previous budgeted estimate.
 
“The Prime Minister and the government have always attached utmost priority to prudent fiscal management and controlling fiscal deficit. He said that the present Government has embarked on the path of consistent fiscal reduction and consolidation in 2014,” the FM said.