New Delhi: The central government’s fiscal deficit in the first four months (April-July) of the current financial year stands at Rs 2.77 lakh crore, which is 17.2 per cent of the full-year target and is lower than the corresponding figure of 33.9 per cent in the same period last year, according to official data released on Friday.
The data showed that net tax revenue for the period stood at Rs 7.15 lakh crore, or 27.7 per cent of the annual target, which is higher compared to Rs 5.83 lakh crore for the same period last year. Total government expenditure during the period was Rs 13 lakh crore or around 27 per cent of the annual target.
“The Government of India’s fiscal deficit more than halved to Rs 2.8 lakh crore or 18 per cent of the FY25 budget estimate in April-July FY25, from Rs. 6.1 lakh crore in April-July FY24,” ICRA Chief Economist Aditi Nayar said.
Finance Minister Nirmala Sitharaman has pegged the fiscal deficit at 4.9 per cent of GDP in the Union Budget 2024-25, up from 5.6 per cent in 2023-24, as part of the government’s policy of pursuing the path of fiscal consolidation.
“Gross and net market borrowings through non-performing securities during 2024-25 are estimated to be Rs 14.01 lakh crore and Rs 11.63 lakh crore respectively. Both will be lower than that in 2023-24,” it said.
The government’s reduction in borrowing will leave more money in the banking system for businesses to borrow for investments, which will help spur growth and create more jobs. Sitharaman said that for fiscal 2024-25, total income other than borrowing and total expenditure are estimated at Rs 32.07 lakh crore and Rs 48.21 lakh crore, respectively.
Net tax revenue is estimated at Rs 25.83 trillion. “The fiscal consolidation path announced in 2021 has been very beneficial for our economy and we aim to achieve a deficit below 4.5 per cent next year,” the finance minister said in her budget speech.
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