India’s fiscal deficit for April-September at Rs 7.02 lakh crore, widens to 39.3% of FY24 aim

India’s fiscal deficit for April-September at Rs 7.02 lakh crore, widens to 39.3% of FY24 aim

Ira Singh
01Nov’23

India’s fiscal deficit for the first six months during the April-September period of Financial Year 2023-24 stood at ₹7.02 lakh crore, or 39.3% of annual estimates, government data showed on Tuesday (October 31). It was ₹6.19 lakh crore during the corresponding period of last fiscal.

The fiscal deficit widened from 37.3% reported in the comparable year-earlier period.

Total receipts stood at 14.17 lakh crore rupees, while overall expenditure in April to September was at 21.19 lakh crore rupees. They were 52.2% and 47.1% of this fiscal year’s budget target.Revenue receipts stood at 13.97 lakh crore rupees, of which tax revenue was 11.60 lakh crore rupees and non-tax revenue was 2.37 lakh crore rupees, according to official report.

Tax and non-tax revenues were 49.8% and 78.5% of the budgeted estimate. While tax revenue was narrower than 52.3% of budget estimate in the last fiscal year, non-tax revenue swelled from 58.4% of budget forecast in the same period last year.Non-tax revenue spiked as the Reserve Bank of India approved the transfer of Rs 87,416 crore as surplus to the central government.

Revenue deficit was at 23.14 lakh crore rupees or 26.6% of the fiscal year’s budget target, data showed. The revenue gap narrowed from 31.4% in year-earlier period, according to official data.

While announcing the federal budget for this fiscal year, Finance Minister Nirmala Sitharaman said India aims to narrow the fiscal gap to 5.9% of gross domestic product from 6.4% in the last financial year.

On the expenditure side, New Delhi spent about 2.06 lakh crore rupees on major subsidies such as food, fertilisers and petroleum. This was 55% of the annual aim, narrower than 63% of budgeted expenditure in the comparable period last year, according to official report.

The increase in fiscal deficit comes amid burgeoning speculations that the Narendra Modi-led government, which is seeking to return to power for the third term after Lok Sabha elections next year, will soon have to unleash various fiscal measures and particularly so as to rein in galloping inflation rate.