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Monday, January 06, 2014

Revenue Deficit crosses budget estimate

Fiscal deficit at 94% of BE in eight months of FY14

The fiscal deficit in the first eight months of FY14 stood at Rs 509557 crore, which was 93.9% as a proportion of Budget Estimate (BE) compared with 80.4% in the same period last year 2013. The month of November 2013 showed a fiscal deficit of Rs 51671 crore, higher than Rs 45798 crore seen previous month. In April-November 2013, fiscal deficit recorded a 23.40% growth compared with same period last year. The upside to fiscal deficit has been due to relatively sharper increase in expenditure as compared to the revenues. On other hand, lower tax revenue growth by 7.19% in April-November 2013 also fueled higher fiscal deficit. The tax revenue again took a toll as only Rs 396166 crore, 45% of the BE of Rs 884078 crore, was collected in the first eight months of FY14. For the month of November 2013, the fiscal deficit at Rs 51671 crore is much higher than a fiscal deficit of Rs 45006 crore during November 2012. The reason for this slippage has been a considerably sharp increase in the plan expenditure. 

The revenue deficit crossed the BE and stood at 103.5% of BE in April-November 2013 compared with 91.2% in April-November 2012. Revenue deficit recorded 23.01% growth to Rs 393019 crore in April-November 2013 compared with Rs 319500 crore in April-November 2012. Revenue deficit during November 2013 was noted higher at Rs 40009 crore, against a Revenue deficit of Rs 34248 crore seen November 2012. 

The primary deficit in November 2013 stood at Rs 21659 crore, which was higher than Rs 17998 crore seen in November 2012. The cumulative primary deficit for April-November 2013-14 rose to Rs 295123 crore from Rs 230067 crore seen same time previous fiscal, marking rise of 28.28%. This accounted to 118.7% of the BE
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