India's fiscal deficit for the first two months ended May 31, 2007 reached 41.2 per cent of the budgeted target for the current financial year (2007-08).
Fiscal deficit, which reflects the country's debt-standing to finance current expenditure, was valued at Rs 62,135 crore till May 31, 2007. For the entire year, (April 2007 to March 2008), the government has set a fiscal deficit target of Rs 1,50,948 crore and pegged it at 3.3 per cent of the gross domestic product (GDP), which touched $1 trillion recently.
The net tax revenue receipts upto May was Rs 21,725 crore, while non-tax revenues stood at Rs 4,174 crore. The plan expenditure stood at Rs 23,135 crore and non-debt capital receipts stood at Rs 2,716 crore.
A rise in the GDP, which has galloped into 9.4 per cent in the last fiscal year (2006-07), is expected to increase tax buoyancy high growth and increase tax revenue collections.
During the last fiscal year, fiscal deficit was 3.5 per cent of the GDP as against the budgeted estimated of 3.7 per cent.
According to the World Wealth Report released by global investment banking giant Merrill Lynch and consultancy major Capgemini, India can easily get rid of its entire fiscal deficit estimated at about $33 billion, if over one-lakh millionaires in the country decide to give away at least one-third from the huge wealth accumulated by them.