NEW DELHI: Just halfway through the financial year, the government ran up fiscal deficit to the extent of about 83% of its budget estimate for 2014-15 on account of sluggish tax revenues and high tax refunds. But it said it is confident of meeting the target of 4.1% of GDP , as the Rs 8,000 crore cut in total borrowing for the year indicates."Fiscal deficit showing upward trend due to higher tax refunds. Very confident of achieving fiscal deficit target of 4.1%," finance minister Arun Jaitley said on Friday, when data released by the Controller General of Accounts showed that fiscal deficit in April-September stood at Rs 4.38 lakh crore or 82.6% of Rs 5.31 lakh crore budgeted for this fiscal. This is worse than the situation at the same time last year when the fiscal deficit was at 76% of the budget estimate for the full year and the then UPA government was forced into massive spending cuts to stay within the target.In the first half of the fiscal, the higher deficit was only on account of lower tax collection as expenditure was in line with budget estimates . The government managed to raise only 33.5% of the budgeted Rs 12.6 lakh crore tax and non-tax receipts. The envisaged disinvestment programme has not even started yet this fiscal. "Higher tax refunds are getting reflected in fiscal deficit number. This year there were pending tax refunds estimated at around Rs 1.20 lakh crore," the finance minister said.Total expenditure in the period under review stood at Rs 8.62 lakh crore or 48% of the budget estimate of Rs 17.948 lakh crore. Plan spending was at over Rs 2.46 lakh crore. Under non-plan head , it was Rs 6.15 lakh crore. Typically, fiscal deficit in the initial few months tends to be higher as receipts start picking up only from the second half onwards.The government also has a cushion of lower fuel subsidy this year and lower spending on food subsidy because the food security law is not likely to be rolled out by many states this year. The government has set aside Rs 1.15 lakh crore for food subsidy this year.The government has also tightened the flagship rural jobs programme MGNREGA, implying lower spending on the scheme. Besides, it expects disinvestment to pick up in the second half as preparations are underway for some big-ticket offers. The government is not taking any chances, though, as indicated by the finance ministry ’s decision on Thursday to unveil belttightening measures that include a 10% mandatory cut in non-plan spends. Analysts agree that the first half notwithstanding, the government will stay within the budgeted fiscal deficit target for the full year."Even though the fiscal deficit reached nearly 83% of the budgeted amount in H1FY15, a sharp slippage relative to the target of 4.1% of GDP is unlikely in 2014-15," said Aditi Nair, senior economist at ICRA.Nayar said the recently announced fiscal prudence measures, savings related to the budgetary allocation for food subsidy and fuel subsidies would ease the pressure on non-plan revenue expenditure in second half of 2014-15.