The Centre's fiscal deficit, the gap between the government's expenditure and income, stood at Rs 1 trillion during April-May, constituting over one-fourth of the budget estimate for the entire 2010-11 fiscal.
During these two months, total expenditure incurred by the government stood at Rs 1.47 trillion while its total receipts came to only Rs 46,002 crore (Rs 460.02 billion), official data showed.
In the corresponding months last fiscal, fiscal deficit was 22.6 per cent of what was projected for the entire fiscal of 2010.
The rise in fiscal deficit is mainly due to higher non-Plan expenditure at over Rs 1 trillion, compared to government revenues.
The government revenues include Rs 1,078 crore (Rs 10.78 billion) from disinvestment in SJVNL and tax revenues of near Rs 32,000 crore (Rs 320 billion).
The better-than-expected receipts from the from the spectrum auctions for 3G services and broadband wireless access is likely to reduce fiscal deficit in the coming months. The budget had projected to bring down fiscal deficit to Rs 3.81 trillion or 5.5 per cent of GDP by the end of the current fiscal, from Rs 4.12 trillion or 6.6 per cent of GDP in the past fiscal.
Spectrum sale, which resulted in a over Rs 1 trillion realisation against the estimated Rs 35,000 crore (Rs 350 billion), alone will help the government cut fiscal deficit to 4.47 per cent.
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