Apr-Oct fiscal deficit at ₹8.03 tn, 45% of annual estimates
₹8.03 trillion, or 45% of the annual estimates of ₹17.87 trillion, according to the data released by the Controller General of Accounts on Thursday. In comparison, the fiscal deficit for April-October of the previous fiscal stood at ₹7.58 trillion, or 45.6% of the annual estimates of ₹16.61 trillion. The widening of the fiscal deficit during FY24 was due to a jump in government spending to fuel economic growth, but this was to an extent offset by higher tax receipts and an increase in non-tax revenue.
The Centre aims to reduce the fiscal deficit—the difference between the government’s income and expenditure—to 5.9% of gross domestic product during FY2024, from 6.4% in the previous fiscal. Department of economic affairs secretary Ajay Seth had on Wednesday said the government is confident of achieving the 5.9% target and committed to lowering the fiscal to 4.5% of GDP by FY26. Capital expenditure rose to ₹5.47 trillion during April-October FY24, or 54.7% of the annual estimates, from ₹4.09 trillion in the same period in FY23.
Total receipts during the period stood at ₹15.91 trillion, or 58.6% of annual estimates, of which tax receipts stood at ₹13.02 trillion, or 55.9% of annual estimates. Non-tax revenue stood at ₹2.66 trillion or 88.1% of annual estimates. Corporate tax collections rose over 17% year-on-year to ₹4.82 trillion during the period under review.
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