Govt likely to reduce fiscal deficit to 5.5 pc

Govt likely to reduce fiscal deficit to 5.5 pc
ENS Economic Bureau

MARCH 3: The Government may be able to reduce the fiscal deficit for the current year by a marginal 0.1 per cent and bring it to 5.5 per cent against the projected figure of 5.6 per cent in the Budget if it is able to cross its target of Rs 58,074 crore of direct tax collections by March-end.

The Government is hoping in this direction only on account of direct tax collections where the last date for payment of advance tax is March 15 this year. Further, by then even tax deduction at source (TDS) may come in. All this together may help it to achieve the targeted revised estimate of direct tax collection of Rs 58,074 crore. Till the end of February 2000, it has been able to collect Rs 39,356.57 crore, which has shown an increase of 16.64 per cent over the previous year's collection during the corresponding period.

The Minister of State for Finance, V Dhananjaya Kumar, told newspersons today that keeping in view these factors, the Government might either cross its target of Rs 58,074 crore or may reach the target. There won't be any shortfall. If the target is crossed then the fiscal deficit will come down to 5.5 per cent, he said. Or else, remain at 5.6 per cent as projected in the Budget.

Kumar said that till the end of February, total tax collections have amounted to Rs 13,8347.01 crore, compared to the total collection of Rs 11,8017.90 crore up to February 1999, registering an increase of 17.23 per cent.

Kumar said that the collection of income tax up to the end of February this year was Rs 18,405.31 crore compared to Rs 15,195.80 crore up to the end of February 1999, registering an increase of 21.12 per cent. Collection of corporation tax up to February 2000 is Rs 20,251.29 crore compared to Rs 17,418.45 crore during the corresponding period last year, registering an increase of 16.26 per cent, Kumar said.

On indirect taxes, Kumar said that the revenue receipts target of the current fiscal was of Rs 1,13,934 crore. Of this, customs share was to be Rs 50,369 crore and excise Rs 63,565 crore. The total collection till February 2000 has been Rs 98,990.44 crore compared to Rs 84,277.02 crore up to February 1999, registering an increase of 17.46 per cent.

Revenues up by 17 per cent, Fiscal deficit to come down: Kumar

New Delhi, Mar 3 (PTI) Government today said the fiscal deficit will be less than the projected 5.6 per cent of GDP due to buoyant 17 per cent revenue growth during the first 11 months of the current Financial year.

''I have a feeling the gross fiscal deficit of 5.6 percent will be down to 5.5 per cent as the revenue collections have touched Rs. 1,38,347.01 crore till February this year'', Minister of state for finance V Dhananjay Kumar told reporters.

Kumar said direct tax collections which had been reviseddown by Rs. 1000 crore to Rs. 58,074 crore would not only be achieved but will also touch the revised target.

''The TDS (tax deducted at source) collections and theadvance tax that is due on March 15 will enable the government to reach the earlier target'', he said adding the collections upto February 29 this year stood at Rs. 39,356.57 crore.

On a cumulative basis, tax collections of both direct andindirect tax have grown by 17.23 per cent till February this year to Rs. 1,38,347.01 crore as against Rs. 1,18,017.90 crore during the corresponding period of April-February 1999-2000, he said.

Total collections of all taxes during February, 2000alone have amounted to Rs. 13,010.14 crore as compared to Rs. 1,0640 crore during February, 1999, registering a growth of 22.28 per cent.

Income tax collection during the period stood at Rs.1814.72 crore as compared to Rs. 1,255.19 crore during February, 1999, an increase of 44.58 per cent. Out of this Corporation tax stood at Rs. 567.83 crore in comparison to Rs. 364.25 crore collected during the same period of 1999, a rise of 55.89 per cent.

Income tax collection during 11 months of the currentfiscal touched Rs. 18,405.31 crore as compared to Rs. 15,195.80 crore during the comparable months of 1999-2000, an increase of 21.12 per cent. Of this corporation tax stood at Rs. 20,251.29 crore as against Rs. 17,418.45 crore collected during April-Feb, 1999-2000, a rise of 16.26 per cent.

Total direct tax collections during February 2000 was Rs.2,409.75 crore which was a 45.77 per cent growth over the figure of Rs. 1,653.14 crore collected during February 1999.

Total collection of direct taxes during April-Feb. 2000is Rs. 39,356.57 crore as against Rs. 33,740.88 crore during the same period of 1998-99 Financial year.