New Delhi, Dec 1: India`s fiscal deficit during April-Oct was 822.6 billion rupees, data showed on Friday, equivalent to 54.5% of the annual target, which analysts expected the government to meet.

Strong growth in direct tax receipts will offset additional spending in the year to end-March, they said.

Total expenditure was at 3.69 trillion rupees until October, while receipts were at 2.87 trillion rupees, an official statement said.

Of total spending, interest payments accounted for 899.83 billion rupees. Tax receipts were at 1.95 trillion rupees or 48.4% of the annual target.

"Direct tax receipts have done well as a result of high economic growth, robust corporate profits and higher earnings of individuals," said DK Joshi, principal economist with domestic rating agency Crisil.

The federal government recently sought parliament`s approval to spend an additional 332.91 billion rupees.

Nearly half would be used to cover bonds issued to oil firms to partly compensate them for selling cheap fuel, and pay interest on market intervention bonds used to offset the adverse impact of large capital inflows.

The central government is also spending heavily to help exporters hit by a firm rupee, and to fund welfare schemes for the poor.

"I think the fiscal deficit target will be met this fiscal year. However, next year the pressure on government finances will increase," said Crisil`s Joshi.

India is aiming to cut its fiscal deficit to 3.3% of gross domestic product in the year to March 2008, from 3.5% the year before.