India Apr-Jan fiscal deficit at ₹11.03 trillion, 64% of annual target
₹11.03 trillion, or 63.6% of the revised annual estimate, according to data released by the Controller General of Accounts on Thursday. The fiscal deficit for the corresponding period of the previous year stood at ₹11.91 trillion, or 67.8% of the annual estimate of ₹17.55 lakh crore for FY23. The budgeted annual estimates for fiscal deficit, which was revised in the vote on account budget on 1 February, was at ₹17.87 trillion for FY24.
The decline in the fiscal deficit, despite a jump in government spending to fuel economic growth, was due to 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 5.8% of gross domestic product during FY24, from 6.4% in the previous fiscal year. The fiscal deficit target was revised from 5.9% of gross domestic product during FY24 during the recently tabled vote on the account budget.
The government is committed to lowering the fiscal deficit to 5.1% of GDP by FY25. A higher fiscal deficit leads to a higher debt burden and more spending on debt servicing, which can be unhealthy for an economy and risks devaluing the currency and impacting private investments. Capital expenditure rose to ₹7.21 trillion during April-January FY24, or 75.9% of the revised annual estimate, from ₹5.70 lakh crore in the same period in FY23.
Total receipts during the April-January FY24 period stood at ₹22.52trillion, or 81.7% of the revised annual estimate, of which tax receipts stood at ₹18.80 lakh crore, or 80.9% of the revised annual estimate. Non-tax revenue stood at ₹3.38 trillion, or 90% of the revised annual estimate. Total expenditure rose to ₹33.55 trillion, or 74.7% of the revised annual
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