Government claims improvement in fiscal deficit level

The gross fiscal deficit of the central government for fiscal year 2012-13 (FY13) was budgeted at Rs5,13,590 crore (5.1 per cent of GDP) compared with Rs5,09,731 crore (5.8 per cent of GDP) in the provisional accounts for 2011-12.

The gross and net market borrowing requirements of the government for FY13 were placed at  Rs5,69,616 crore and   Rs4,79,000 crore against Rs5,10,000 crore and Rs4,36,414 crore, respectively, in FY12. 

The fiscal outcome during April-November of FY13 indicates moderate improvement in terms of key deficit indicators as  percentage of budget estimates (BE), vis-a-vis their position during the same period of the previous fiscal year.

Gross tax collections during the period at 50.5 per cent of BE were marginally lower than 50.7 per cent a year ago. In direct taxes, while collections from corporation tax at Rs1,62,964 crore showed a growth rate of 10.6 per cent as against budgeted growth rate of 13.9 per cent, personal income tax collections at Rs1,05,335 crore showed a robust growth of 23.6 per cent against 13.9 per cent growth in BE for FY13.

In the major indirect taxes, while growth in collections from  customs and excise duties remained low at 4.2 per cent and 16.5 per  cent, respectively, against budgeted growth rates of 22.0 per cent and 29.1 per cent, service tax collections increased by 34.3 per cent during April-November 2012-13 as against BE growth rate of 30.5 per cent.

Non-tax revenue at 46.3 per cent of BE was lower than 57.7 per cent in the same period of the previous year. Total expenditure showed containment as per cent of BE at 58.2 per cent during April-November 2012-13 as compared with 60.5 per cent during the corresponding period of the previous year. Expenditure reduction in terms of percentage to BE was seen under both categories viz, revenue and capital.