Fiscal deficit reaches over 78% at Rs 5.54 lakh crores

New Delhi: The country's fiscal deficit touched Rs 5.54 lakh crore at the end of August, which was 78.7 per cent of the Budget Estimate for 2019-20, official data showed on Monday.

In absolute terms, the fiscal deficit or the gap between expenditure and revenue was Rs 5,53,840 crore as on August 31, according to the data released by the Controller General of Accounts (CGA).

The deficit was at 86.5 per cent of the 2018-19 Budget Estimate (BE) in corresponding month a year ago.

The government has pegged the fiscal deficit for the current financial year at Rs 7.03 lakh crore, while aiming to restrict the deficit at 3.3 per cent of the gross domestic product (GDP).

However, the government has let go of its revenues to the tune of Rs 1.45 lakh crore by announcing cuts in corporate tax, aimed at boosting the faltering economy.

Economic Affairs Secretary Atanu Chakraborty on Monday said the government maintains the fiscal glide path with the borrowing target of Rs 2.68 lakh crore for the second half of this financial year.

The CGA data showed that revenue receipts of the government during the April-August 2019 period rose to 30.7 per cent of the BE compared to 26.9 per cent in the corresponding period last year.

In absolute terms, revenue receipts stood at Rs 6.03 lakh crore at the end of August. For the entire 2019-20, the revenue receipts have been pegged at Rs 19.62 lakh crore.

The capital expenditure was 40.3 per cent of the BE as compares with 44.1 per cent in the year-ago period, the CGA said.