India's April-Aug fiscal deficit reaches 76% of full-year target

[NEW DELHI] India's fiscal deficit during the five months to August was 4.08 trillion rupees (S$83.07 billion) or 76.4 per cent of the budgeted target for the fiscal year ending in March 2017, government data showed on Friday.

The deficit is usually higher in initial months as major revenues, including income tax and dividends from state companies, are mostly received towards the end of a financial year.

The fiscal deficit was 66.5 per cent of the full-year target during the same period a year ago.

Net tax receipts in the first five months of 2016/17 fiscal year were 2.8 trillion rupees.

Finance Minister Arun Jaitley, who faces the challenge of providing more funds for capital infusion in state banks, aims to cut down the deficit to 3.5 per cent of GDP from 3.9 per cent in the previous year.

REUTERS