Fiscal Deficit until November touches 50.7% of FY24 target
government's fiscal deficit in the first eight months of this fiscal year hit 50.7% of the annual target, compared with 58.9% a year before, as a tight leash on spending in recent months on top of improved tax collections kept the deficit under control, according to official data released on Friday.
In absolute terms, the fiscal deficit until November dropped below the level a year earlier, for the first time this fiscal year. Between April and November, the deficit touched ₹9.07 lakh crore, compared with ₹9.78 lakh crore a year before.
The fiscal gap in November narrowed more than a half to ₹1.03 lakh crore from ₹2.20 lakh crore a year earlier, thanks to lower tax devolution to states, a contraction in revenue spending and only a marginal increase in capital expenditure.
The lower deficit further lends credence to the official assertion that the FY24 deficit target of 5.9% of GDP will be met, amid fears the nominal economic growth may trail the budgeted goal (10.8% after the base revision).
In fact, the fiscal gap showed a marked trend reversal having hit as much as 33.9% of the annual target up to July, sharply higher than 20.5% a year before.
At ₹26.52 lakh crore, total expenditure was 58.9% of the full-year target until November this fiscal, against 61.9% a year before. Revenue spending hit 59% of the annual target, down from 62.5%.
Capital spending until November touched 58.5% of the FY24 goal, against 59.6% of the target a year earlier.
Receipts, meanwhile, totalled ₹ 17.46 lakh crore until November, or 64.3% of the annual target, against 64.1% a year earlier. To be sure, in absolute terms, overall expenditure, comprising both revenue spending and capex, rose 8.6% on year this fiscal till November.
