Fiscal deficit expected to be below 3.9 pc for FY16: Finmin

Finance Ministry today said the fiscal deficit for 2015-16 is likely to remain below 3.9 per cent of the GDP on the back of tax receipts and realisation from disinvestment.

Stressing that the government remains committed to the path of fiscal consolidation, the Ministry said “as per initial estimates, the fiscal deficit for 2015-16 is expected to be within 3.9 per cent”.

As per the fiscal consolidation roadmap, the fiscal deficit for the current fiscal has been pegged at 3.5 per cent of the GDP.

Receipts of tax revenues are also on track and the 2015-16 revised targets are expected to be fully met when the bank scrolls are fully accounted for, a statement from the Finance Ministry said.

According to revised estimate, Rs 7.52 lakh crore was estimated to come from direct taxes (corporate, and income tax) and another Rs 7.03 lakh crore from indirect taxes (customs, excise and service tax) in 2015-16.

With regard to disinvestment target, it said, Rs 25,000 crore has been achieved for fiscal ended March 2016.

The revised estimates announced in the Budget 2016-17 pegged the disinvestment receipts from minority stake sale in PSUs at Rs 25,312 crore, as against the target of Rs 41,000 crore. It did not expect any revenues from strategic stake sale.

As regards plan expenditure for 2015-16, it is expected to be around Rs 4,70,000 crore.

This is higher than the budget estimate of 2015-16 and also higher than the actual plan expenditure in 2014-15, it said.