NEW DELHI (Reuters) - India's fiscal deficit for April-August was 4.35 trillion rupees ($51.93 billion), or 27% of the estimate for the financial year, government data showed on Monday.
Net tax receipts for the period were 8.74 trillion rupees, or 34% of the annual target, compared with 8.04 trillion rupees for the same period last year, according to the data.
Total government expenditure during the period was 16.52 trillion rupees, or about 34% of the annual goal, lower than the 16.72 trillion rupees in the same period last year.
The government's spending has been lower due to general elections.
For the first five months, the government's capital expenditure or spending on building physical infrastructure was 3.01 trillion rupees, or 27% of the annual target, against 3.74 trillion rupees for the same period a year earlier.
The Indian government has pegged its fiscal deficit target to 4.9% of the gross domestic product in its latest budget, compared with 5.6% in the last fiscal year.
($1 = 83.7740 Indian rupees)
Analysis:
India's fiscal deficit reaching $51.93 billion in April-August indicates a significant gap between the government's revenue and expenditure. This could potentially lead to increased borrowing or reduced spending in the future to manage the deficit. The lower government spending due to general elections also suggests a temporary slowdown in infrastructure development. The fiscal deficit target of 4.9% of GDP shows the government's commitment to fiscal discipline, but achieving this goal may require further adjustments in revenue generation and expenditure control.
