The Centre's fiscal deficit fell by 16.93 per cent to Rs 1,51,425 crore (Rs 1,514.25 billion) during April-August, 2010, year-on-year, on increased revenues from the auction of 3G spectrum, or radio waves, for mobile telephony.
The deficit represents 39.7 per cent of the estimate for the current financial year.
The Budget for 2010-11 estimates the fiscal deficit, which represents excess government expenditure over its revenue, at Rs 3,81,408 crore (Rs 3,814.08 billion).
Towards the end of the first quarter this fiscal, the government had collected over Rs 1.06 lakh crore (Rs 1.06 trillion) through the sale of spectrum for both 3G and Broadband Wireless Access services against the Budget target of Rs 35,000 crore (Rs 350 billion).
In the first five months of 2010-11, non-tax revenue receipts were Rs 1,52,299 crore (Rs 1,522.99 billion), crossing the full year target of Rs 1,48,118 crore, mainly due to robust response for spectrum sale.
During the corresponding period last year, non-tax revenue receipts were at 35.9 per cent of the estimate.
On the other hand, tax revenue receipts during April- August period reached 25.9 per cent of 2010-11 estimate at Rs 1,38,500 crore (Rs 1,385 billion).
The overall revenue receipts target is pegged at Rs 5,34,094 crore (Rs 5,340.94 billion) for the current fiscal.
The total expenditure in the first five months of the current fiscal stood at Rs 4,47,703 crore (Rs 4,477.03 billion), thereby reaching 40.4 per cent of the target for the full year.
The plan expenditure during April-August period was at Rs 1,36,454 crore (Rs 1,364.54 billion) while non-plan expenditure stood at Rs 3,11,249 crore (Rs 3,112.49 billion).
The government's expenditure for the current fiscal is targeted at Rs 11,08,749 crore (Rs 11,087.49 billion).
The Centre's fiscal deficit targets went awry after it provided stimulus to the economy since December 2008 to blunt the impact of global financial crisis.
Against the target of reducing the deficit to 3 per cent of gross domestic product by 2008-09, as per the Fiscal Responsibility and Budget Management Act, the Centre saw it double to around 6.2 per cent that year.
Last fiscal, the deficit crossed 6.5 per cent. After partial withdrawal of stimulus in the Budget for 2010-11, fiscal deficit is now pegged at lower 5.5 per cent of GDP in the current financial year.
The Centre's revenue deficit in the first five months of the current fiscal stood at Rs 1,00,352 crore (Rs 1,003.52 billion), representing 36.3 per cent of the target for the full fiscal.
