New Delhi: The fiscal deficit has already touched 52 per cent of the government’s budget estimate in the first two months of 2019-20.Also Read - Another Game Against A Stronger Team for India...Stimac's Boys Set Sights On Jordan
During the interim budget, in February, the government had estimated Rs. 7.03 lakh crore as the fiscal deficit for the current financial year. Also Read - RBI to Adopt Graded Approach to Launch Digital Currency in India. Check Detailed Plan Here
In absolute terms, the gap between expenditure and revenue, stood at Rs 3,66,157 crore, as per the data released by the Controller General of Accounts (CGA). Also Read - Wriddhiman Saha 'Hurt' By CAB Official's Remark, Leaves Bengal WhatsApp Group
Last year, during the same period the fiscal deficit was 55.3 per cent of the 2018-19 budget estimate.
Finance Minister Nirmala Sitharaman currently facing the challenge to contain fiscal deficit to elevated levels of 3.4 per cent of GDP (gross domestic product) in FY20.
Viral Acharya, who resigned from the post of Deputy Governor of Reserve Bank of India (RBI), had differences with Governor Shaktikant Das on the state of the fiscal deficit.
While Das had said that it was unfair to club the borrowings of state-run enterprises into the state of fiscal deficit, Acharya asserted that the borrowing requirements of PSUs matter to the overall deficit.
The CGA data showed that revenue receipts of the government during April-May, 2019-20 was 7.3 per cent of the Budget Estimate (BE).
In the year-ago period also, the revenue receipts were at a similar level.
However, the capital expenditure was only 14.2 per cent of the BE as compared to 21.3 per cent in the year-ago period.
Total expenditure during the April-May period stood at Rs 5.12 lakh crore or 18.4 per cent of BE. It was 19.4 per cent of BE in the corresponding period of the last fiscal.
(With PTI Inputs)