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India’s April-September fiscal deficit narrows to 29% of the full-year estimate

New Delhi: The Union government’s fiscal deficit at the end of the first half of financial year FY25 touched 29.4 per cent of the full-year target. Data released by the Controller General of Accounts (CGA) showed this.

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

Fiscal deficit  was at Rs 4,74,520 crore at September-end.The deficit stood at 39.3 per cent of the Budget Estimates (BE) in the corresponding period of 2023-24.

Also Read: India’s core sector growth slows to 2% in September 

In the Union Budget, the government projected to bring down the fiscal deficit to 4.9 per cent of gross domestic product (GDP) in the current 2024-25 financial year. The deficit was 5.6 per cent of the GDP in 2023-24. In absolute terms, the government aims to contain the fiscal deficit at Rs 16,13,312 crore during the current fiscal.

The revenue-expenditure data of the Union government for the first six months of 2024-25 showed that the net tax revenue was Rs 12.65 lakh crore or 49 per cent of BE for the current fiscal. The net tax revenue collection was 49.8 per cent at September-end 2023.

The central government’s total expenditure in the six months through September stood at Rs 21.11 lakh crore or 43.8 per cent of BE. Expenditure was 47.1 per cent of BE in the year-ago period.

Of the total expenditure, Rs 16.96 lakh crore was in the revenue account and Rs 4.15 lakh crore in the capital account.

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