Fiscal deficit till Oct forms 88% of entire year's estimates

NEW DELHI: With the Centre's expenditure rising vis-a-vis revenue, its fiscal deficit touched Rs 1,17,070 crore in the first seven months of the current fiscal, constituting 87.8 per cent of what is budgeted for the entire year.

This is way above the 54.5 per cent in the corresponding period last year.

The revenue deficit, which represents gap between current expenditure over current revenue, continued to surpass estimates for the whole year by 57.7 per cent.

The revenue deficit stood at Rs 87,027 crore during April-October 2008 as against Rs 55,184 crore for the entire fiscal.

Finance Minister P Chidambaram recently said that it may require one more year to eliminate revenue deficit and reduce fiscal deficit below three per cent as required by the Fiscal Responsibility and Budgetary Management Act.

Quoting Nobel laureate Paul Krugman, Chidambaram had said, "This is not the year to worry about fiscal deficit."

The Centre's revenue stood at Rs 2,89,400 crore during first seven months, accounting for 48 per cent estimated for the entire year, against 50.7 per cent a year ago.

Most of the revenue came from taxes at Rs 2,32,396 crore. Expenditure stood at Rs 4,08,395 crore, constituting 54.4 per cent of what is pegged for the entire year, slightly up from 54.2 per cent in a year ago period.

Much of the expenditure comes under the non-plan head at Rs 2,88,657 crore, constituting 56.9 per cent estimated for the entire year.

Plan expenditure stood at Rs 1,19,738 crore, which represents 49.2 per cent of Rs 2,43,386 crore budgeted for the entire year.