Last Updated : Aug 01, 2015 10:54 AM IST | Source: CNBC-TV18

Plan spend rises in Apr-Jun; fiscal gap at 51% of FY16 tgt

The higher spend on plan expenditure may spell good news for the economy.

The central government's fiscal deficit has reached Rs 2.86 lakh crore, or 51.6 percent of its Rs 5.5 lakh crore target it has targeted in its year Budget during the first three months (April-June) of fiscal year 2016.

This comes on the back of it spending Rs 4.31 lakh crore and earning Rs 1.44 lakh crore in receipts during the three-month period.

However, the fiscal deficit data should be seen in the context that the government's revenues tend to pick up during the latter part of the year, especially during the first quarter.

In comparison, the deficit appears better than April-June fiscal year 2015 numbers in which the government had incurred a fiscal gap that was 56.1 percent of its yearly target.

On the expenditure front, the government has incurred spending of 24.1 percent of budgeted allocation (Rs 3.16 lakh crore) on non-plan expenditure and 24.7 percent on plan expenditure (Rs 1.15 lakh crore).

The higher spend on plan expenditure (last year, the government had spent only 19 percent of its target during the three-month period) may spell good news for the economy. Over the past several years, governments have struggled to meet their spending targets on plan expenditure, which is usually made up of spending on its various schemes, while notching up spend on non-plan expenditure, which comprises of heads such as subsidies, salaries etc.
First Published on Jul 31, 2015 10:24 pm