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India’s fiscal deficit surpasses 50% full-year budget estimates

New Delhi: The Indian government’s  fiscal deficit has surpassed 50% of the full-year budget estimate (BE). The fiscal  deficit at the end of November stood at Rs 9.06 lakh crore or 50.7% of the full-year budget estimate. Data released by the Controller General of Accounts (CGA). Fiscal deficit is difference between expenditure and revenue.

The fiscal deficit  was at Rs 9,06,584 crore during the April-October period of 2023-24. In the corresponding period last year, the deficit was at 58.9% of the budget estimates of 2022-23. For 2023-24, the fiscal deficit of the government is estimated to be at Rs 17.86 lakh crore or 5.9% of the gross domestic product (GDP).

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The government received Rs 17.4 lakh crore (64.3% of corresponding BE 2023-24 of total receipts) up to November 2023. It comprises of Rs 14.35 lakh crore tax revenue (net), Rs 2.84 lakh crore of non-tax revenue and Rs 25,463 crore of non-debt capital receipts. The non-debt capital receipts consist of recovery of loans and miscellaneous capital receipts.

As per the CGA data, total expenditure incurred by the central government was at Rs 26.52 lakh crore (58.9% of corresponding BE 2023-24) during April-November 2023. Out of the total expenditure, Rs 20.66 lakh crore was on revenue account and ?Rs .85 lakh crore was on capital account.

Meanwhile, India’s current account deficit (CAD) declined to 1% of gross domestic product (GDP) in the second quarter. The CAD decreased to $8.3 billion in the September quarter of 2023-24 against a deficit of $9.2 billion in the preceding three months. Data released by Reserve Bank of India (RBI) revealed this.

 

 

 

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