Macroeconomic Indicators (13 August 2011)

The finances of the Government of India during the first quarter of 2011-12 showed some stress. Gross tax revenue increased by only 5% against 13.9% a year ago. While customs duty and service tax showed some buoyancy, there was a decline in corporate tax receipts by 27.8%. Non-tax revenue, in the absence of the 2010 one-time spectrum auction revenue, declined by 89.4% compared to a 12-fold increase in the previous year. Despite a moderation in expenditure growth to 7.8% from 23%, the fiscal deficit widened from Rs 40,196 crore to Rs 1,62,653 crore.