Amid the lingering reform measures, the worries of the government are not looking settling down soon. A day after the RBI brought down its expected GDP growth for the year from 7% to 6.5%, the fiscal deficit in the first quarter of this financial year stood at a little more than a third of the Budget estimate for 2012-13. Fiscal deficit touched 37.1% of the budgeted amount at the end of June as the government struggled to curb expenditures, though it's slightly lower than the deficit registered for the same period last year of 39.4%.
As per the latest data of the Controller General of Accounts (CGA), in absolute term the fiscal deficit or shortfall between expenses and revenues in the April-June quarter rose to Rs 1.90 lakh crore, while for the full 2012-13 fiscal, the government has budgeted the fiscal deficit at Rs 5.13 lakh crore, or 5.1% of GDP. Indicating the revenue-driven deficit, total expenditure stood at 20.9% of the budgeted amount as compared to 20.8% last year. The revenue receipts were 12.7% of the budget amount. The deficit was primarily funded by domestic borrowings. The revenue deficit was 44% of the budget estimates at Rs 1.53 lakh crore and the primary deficit was 67% of the budget estimates in the April-June period at Rs 1.30 lakh crore.
Non-debt capital receipts stood at Rs 2,402 crore, constituting 5.8% of the budget estimates for entire the year and Tax revenue stood at 13.6% of the budgeted amount as compared to 11.8% last year. While, Plan expenditure stood at Rs 86,221 crore, accounting for 16.5% of the estimates at Rs 521,025 crore.