India’s fiscal deficit reached 21.3% of the full year target, according to numbers released by the government today.
The fiscal deficit for the four months stood at Rs 3.21 lakh crore ($43.98 billion), which is 21.3% of the full fiscal’s target.
Net tax receipts were 5.21 trillion rupees while total expenditur was 10.04 trillion rupees, the data showed.
The government has pegged this fiscal’s deficit at 6.8 per cent of the GDP. Improving tax collection should provide relief as experts say that the numbers can be achieved easily.
“I think the 6.8% deficit target is likely to be met… The Govt could probably even better it, but I have a feeling they will not and instead choose to spend any additional revenues to support the revival process,” Axis Bank’s Chief Economist Saugata Bhattacharya told ETMarkets.