The current financial year appears to have begun on a good note with an improvement in the revenue deficit as a percentage of the Budget target in April 2005 to 28.3 per cent, compared to 30.5 per cent in the corresponding period the previous year.
In absolute terms, the revenue deficit during April 2005 was pegged at Rs 27,016 crore (Rs 270.16 billion) against the Budget target of Rs 95,312 crore (Rs 953.12 billion) for 2005-06, according to data released by the Controller General of Accounts.
The improved revenue deficit was on account of marginally higher revenue receipts during April at Rs 1,717 crore (Rs 17.17 billion), accounting for 0.5 per cent of the Budget target for the fiscal 2005-06. The share of revenue receipts during April, 2004 was 0.3 per cent of the Budget target.
Overall receipts were, however, lower at Rs 1,850 crore (Rs 18.5 billion) in April this year compared to Rs 4,279 crore (Rs 42.79 billion) in April 2004. The lower overall receipts were due to lower non-debt capital receipts at Rs 133 crore (Rs 1.33 billion) as against Rs 3,456 crore (Rs 34.56 billion) in April last year.
The fiscal deficit in the first month as a percentage of the budget target was only marginally better at 18.8 per cent {Rs 28,406 crore (Rs 284.06 billion)} compared to 18.9 per cent during April 2004. The fiscal deficit had been budgeted at Rs 1,51,144 crore (Rs 1511.44 billion) or 4.5 per cent of the GDP for 2005-06 compared to Rs 1,36,452 crore {(Rs 1364.52 billion) 4.3 per cent} last fiscal.
The total expenditure during April, as a percentage of the Budget target, was better at 5.9 per cent as against 6.3 per cent last year, mainly on account of a lower non-plan expenditure.
The Centre was able to squeeze its overall spendings to Rs 30,256 crore (Rs 302.56 billion) in the first month of 2005-06, which is marginally lower than Rs 30,277 crore (Rs 302.77 billion) a year ago.