Updated February 29th, 2024 at 17:04 IST

Fiscal deficit reaches 63.6% of FY24 target in first nine months of current fiscal year

For the fiscal year 2023-24, the government has estimated a fiscal deficit of Rs 17.35 lakh crore, which is equivalent to 5.8 per cent of the GDP.

Reported by: Business Desk
India's fiscal deficit | Image:Freepik
Advertisement

Q3 fiscal deficit: The government's fiscal deficit reached Rs 11 lakh crore by the end of January, representing 63.6 per cent of the revised annual target, according to official data released on Thursday. This figure contrasts with the corresponding period last year when the fiscal deficit stood at 67.8 per cent of the Revised Estimates (RE) of the Union Budget for 2022-23. 

For the fiscal year 2023-24, the government has estimated a fiscal deficit of Rs 17.35 lakh crore, which is equivalent to 5.8 per cent of the GDP.

Advertisement

As of January 2024, the government's total receipts amounted to Rs 22.52 lakh crore, constituting 81.7 per cent of the corresponding RE for 2023-24. These receipts comprised Rs 18.8 lakh crore from tax revenue (net), Rs 3.38 lakh crore from non-tax revenue, and Rs 34,219 crore from non-debt capital receipts, including loan recoveries and miscellaneous capital receipts.

Total expenditure incurred by the Centre reached Rs 33.54 lakh crore, accounting for 74.7 per cent of the corresponding RE for 2023-24. Out of this expenditure, Rs 26.33 lakh crore was allocated to the revenue account and Rs 7.2 lakh crore to the capital account.

Advertisement

The Controller General of Accounts (CGA) data revealed that Rs 8,20,250 crore had been transferred to state governments as their share of taxes by the central government up to this period, marking an increase of Rs 1,52,480 crore compared to the previous year.

Of the total revenue expenditure, Rs 8,21,731 crore was allocated to interest payments, while Rs 3,15,559 crore was allocated to major subsidies.

Advertisement

Commenting on the data, Aditi Nayar, Chief Economist at ICRA, expressed confidence that while there might be some deviation from the disinvestment target and capital expenditure may lag behind the FY2024 RE, the revised fiscal deficit target of Rs 17.3 lakh crore for FY2024 is not expected to be exceeded by ICRA.

The interim Budget presented by Prime Minister Narendra Modi's government refrained from announcing populist measures, which is anticipated to help reduce the fiscal deficit to 5.1 per cent of GDP in the next fiscal year and 4.5 per cent in FY26. The nominal GDP growth for the next financial year has been projected at 10.5 per cent, with the nominal GDP estimated at Rs 3,27,71,808 crore, assuming a 10.5 per cent growth rate over the estimated nominal GDP of Rs 2,96,57,745 crore as per the First Advance Estimates of FY2023-24.

Advertisement

Assisted by an improvement in tax buoyancy, the government managed to achieve a fiscal deficit of 5.8 per cent against the budget estimate of 5.9 per cent for the current financial year.

(With PTI inputs)

Advertisement

Published February 29th, 2024 at 17:04 IST