The two months of the fiscal saw the government running up a fiscal deficit of 33 percent of the budgeted amount of Rs 5.4 trillion for the entire 2013-14 fiscal, as it resumed spending again to boost growth after a sharp compression in expenditure last fiscal.
Fiscal deficit stood at.1.8 lakh crore in April-May 2013-14, according to the data released by the Controller General of Accounts on Friday. Fiscal deficit in April-May 2012-13 was 27.6 percent of the budget estimate. Sluggish revenues have also contributed to the fiscal deficit besides higher spend.
The governments receipts stood at 3.3 percent of the budget estimates in April-May,2013-14 as against 5.5 percent in same period previous fiscal. Fiscal deficit in 2013-14 is pegged at Rs 5.42 trillion or 4.8 percent of GDP. The government will not pursue a sharp contraction in spending like last financial year but without deviating from fiscal consolidation plan.
