Fiscal deficit for April-Oct at 102.4%, crosses full year target

The fiscal deficit for the period April-October was recorded at 102.4% crossing the full year target underlining the fiscal concerns for the government.

Fiscal deficit from April-October stood at Rs 7.2 lakh crore vs Rs 6.48 lakh crore. The budgeted target was Rs7.03 lakh crore.

The revenue gap for the April-October period stood at Rs 5.46 lk cr showing the weakness in tax collection. The revenue deficit stood at Rs 61,400 crore.

This has raised concerns over fiscal slippage in the current fiscal even as the government is trying to meet the target on account of ramping up efforts to meet the disinvestment target of Rs 1.05 lakh crore.

The fiscal deficit for the entire year is projected at 3.3 per cent as announced in the Budget. Experts have predicted that the govt may breach this target on account of weaker tax collections because of slowing economic growth and corporate tax benefits rolled out to boost investments.