Fiscal deficit at 3.51% of GDP during 2016-17, demonetisation boosts tax receipts
Income tax collections were up by over 20% as the government’s demonetisation drive forced many black money hoarders to come clean.business Updated: May 31, 2017 20:38 IST
Centre’s fiscal deficit stood at 3.51% of gross domestic product (GDP) during the financial year ending in March 2017, which is almost close to the budget target, as demonetisation boosted tax revenues and offset the impact of a slowdown in the economy.
Government data showed on Wednesday the total expenditure at Rs 19.75 lakh crore while receipts at Rs 14.4 lakh crore, leaving a deficit of Rs 5.35 lakh crore. The deficit works out to 100.1% of the revised estimate.
The revenue deficit was at 2.02% of GDP during 2016-17.
The government mopped up Rs 11.02 lakh crore in net tax receipts during the fiscal year, which was higher than the Rs 10.89 lakh crore estimated in the budget.
Income tax collections were up by over 20% as the government’s demonetisation drive forced many black money hoarders to come clean, provisional data showed.
Separate data showed the GDP growth slowed to 7.1% in 2016-17, from 8% in the previous year, as the note ban announced in November slowed economic activity in many sectors including manufacturing and construction.