labels: economy - general
India''s April-June fiscal deficit crosses 74 per cent of annual traget at Rs112,000 crorenews
31 July 2007

Mumbai: The country''s fiscal deficit in the April-June quarter stood at Rs112,000 crore ($27.8 billion), or 74.5 per cent of the target of Rs151,000 crore for the full year, the government said in a statement.

The government attributed the higher deficit to additional spending for acquiring the Reserve Bank''s stake in the State Bank of India, the country''s largest lender.

The finance minister, however, had stated that the transaction involving the acquisition of RBI stake in the State Bank of India was budget neutral and the jump in the deficit - from Rs62,135 crore in the April-May period - was not a cause for concern.

During the same quarter last year, the deficit was 52.3 per cent of the 2006-07 budget target.

The government had, in June, paid RS35531 crore in cash to the Reserve Bank for a 59.73 per cent stake in State Bank of India.

"This transaction will be neutralised by realising equal amount of receipts from Reserve Bank of India during the course of this financial year," the statement said.

"After excluding this transaction, the fiscal deficit up to June is Rs76,873 crore."
"The revenue situation is buoyant. The money spent on buying the SBI stake will get neutralised once the book entries are done later in the year," the statement said.

Total receipts were at Rs67,496 crore of which taxes contributed Rs57,470 crore, the statement said. Rs180,000 crore. Revenue deficit was at Rs68,646 crore until June-end, which is 96 per cent of the full-year target.


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India''s April-June fiscal deficit crosses 74 per cent of annual traget at Rs112,000 crore