The Fiscal Deficit, the difference between the government's earnings and expenditure, has crossed 56 % of the projected figure in the first three months of the current fiscal year. The government had a target of Re. 5.31 lakh crore, or 4.1 % of GDP but the fiscal deficit in the first three months only has touched Re. 2.98 lakh crore, which makes for 56% per cent of the Budget target, with nine months to go.
The expenditure during April-June of the current and the previous fiscal year is at the same level of 23 % of the target. However, the problem lies with revenue collection, which slipped to 9.2 % from 10.6 % of the target. The revenue collection from taxes as well as other sources is less than in the last fiscal. Tax collection are 10.1 % as compared to the target of 11.5 %.
Another reason for the higher deficit could b fuel subsidy. It is a normal practice tp pay subsidy due for January-March of the previous fiscal in January-March of the current fiscal. This quarter, the government has paid R,. 24,849 crore as fuel subsidy, which is 39 % of the total Budget target.