India's Fiscal Deficit Jumps To Rs 6.43 Lakh Crore, 36 Per Cent Of FY24 Target

The deficit stood at 32.6 per cent of the Budget Estimates (BE) in the corresponding period of the financial year 2022-23

In the Union Budget, the government projected to bring down the fiscal deficit to 5.9 per cent of the GDP in the current 2023-24 financial year.

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The government's fiscal deficit widened to Rs 6.43 lakh crore in April-August from Rs 6.06 lakh crore in April-July period, according to a data released by the Controller General of Accounts (CAG) on Friday. At Rs 6.43 lakh crore, the fiscal deficit for the first five months of the current financial year accounts for 36 per cent of the full-year target of Rs 17.87 lakh crore.

The deficit stood at 32.6 per cent of the Budget Estimates (BE) in the corresponding period of the financial year 2022-23.

In the Union Budget, the government projected to bring down the fiscal deficit to 5.9 per cent of the gross domestic product (GDP) in the current 2023-24 financial year. The fiscal deficit was 6.4 per cent of the GDP in 2022-23 against the earlier estimate of 6.71 per cent.

Unveiling the revenue-expenditure data of the central government for the April-August period of 2023-24, CGA said the net tax revenue was Rs 8.03 lakh crore, or 34.5 per cent, of the BE for the current fiscal. The net tax revenue collection was 36.2 per cent at August-end 2022.

The central government's total expenditure in the first five months stood at Rs 16.71 lakh crore, or 37.1 per cent, of the BE. The expenditure was 35.2 per cent of the BE a year ago.

Of the total expenditure, Rs 12.97 lakh crore was on the revenue account and Rs 3.73 lakh crore towards the capital account.

Fiscal deficit is the difference between the total expenditure and revenue of the government. It is an indication of the total borrowings that are needed by the government.

In August, the Centre's fiscal deficit was only Rs 37,233 crore, down 81 percent from the same month of the previous year, as total receipts posted a four-fold increase to Rs 2.54 lakh crore on the back of net tax revenues jumping by more than six-and-a-half times to Rs 2.21 lakh crore.