By IANS,
New Delhi: India’s fiscal deficit will not be more than 5.5 percent of its gross domestic product (GDP) in 2010-11 as surge in revenue collections offset high expenditure, according to a mid-term analysis of the economy for fiscal 2010-11 tabled in parliament Tuesday.
“With the prevailing trends in revenues and expenditures, the target for the fiscal deficit of 5.5 percent of GDP is expected to be met. The performance in the first half of the fiscal year 2010-11 meets all the targets in respect of the benchmarks for non-debt receipts, fiscal deficit and the revenue deficit,” the analysis tabled by Finance Minister Pranab Mukherjee in both houses of parliament said.
Mukherjee, in his budget estimates, targeted to reduce revenue deficit to 4 percent of the GDP, and overall fiscal deficit to 5.5 percent of the GDP for fiscal 2010-11.
“The progress in reduction in fiscal deficit for the year 2010-11 is in line with the commitment made in the medium-term fiscal policy statement,” the analysis said.
Revenue receipts jumped 62.9 percent to Rs.3,98,234 crore during the first half of fiscal 2010-11 from Rs.2,44,471 crore during the same period last year.
Revenue receipts during the first half of the current fiscal amounts to 58.4 percent of the total budgetary estimates for whole fiscal. It is a significant surge in comparision to last fiscal’s 38.9 percent and a five-year average of 39.1 percent.
Almost all major components of tax revenue have shown better than estimated growth during the first half of 2010-11, including direct and indirect taxes, according to the survey.
In addition, non-tax receipts were also significant and placed at Rs.1,64,819 crore during April-September 2010 amounting to 111 percent of budgetary estimates of 2010-11 and an unprecedented 180 percent growth, due to the higher receipts from 3G spectrum allocation auction.
“Non-debt capital receipts were also higher due to disinvestment receipts. With the robust disinvestment pipeline in place, the budgetary estimate of Rs.40,000 crore would be met.”