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Fiscal Deficit crosses 61% of FY20 Estimate in Q1 Only

The fiscal deficit was Rs 4.32 lakh crore during on June 30, 2019 at the end of the first quarter as per the data released by the Controller General of Accounts (CGA) which already is 61% of the annual estimate of Rs 7.03 lakh
New Delhi: CGA has released data on the fiscal deficit for the first quarter of FY20. In the first quarter itself, the government's fiscal deficit has touched Rs 4.32 lakh crore, which is 61.4 per cent of the budget estimate for 2019-20 fiscal, which is estimated to be at Rs 7.03 lakh crore. Interestingly, during the April-June period, the total expenditure of the Government stood at Rs 7.21 trillion which is 25.9% of the budget estimate, as per data released by Controller General of Accounts (CAG) on Wednesday. The government aims to restrict the fiscal deficit at 3.4 per cent of the GDP in the current fiscal, the same as the last financial year. The CGA data showed that revenue receipts of the government during April-June, 2019-20 was 14.4 per cent of the Budget Estimate (BE). It was 15.5 per cent of BE in the year-ago period. It is important to tell here that in the year-ago period, for the first quarter in FY18-19 the fiscal deficit was 68.7 per cent of the 2018-19 budget estimate. The capital expenditure was 18.8 per cent of the BE. This compares with 29 per cent in the year-ago period, the CGA said. Total expenditure during the April-June period stood at Rs 7.21 lakh crore or 25.9 per cent of BE. It was 29 per cent of BE in the corresponding period last fiscal. The government has pegged its total expenditure during the fiscal ending March 2020 at Rs 27.84 lakh crore. The CAG said the fiscal deficit figure shown in monthly accounts during a financial year is not necessarily an indicator of fiscal deficit for the year as it gets impacted by a temporal mismatch between the flow of non-debt receipts and expenditure up to that month on account of various transitional factors both on receipt and expenditure side.