Target to limit fiscal deficit to 4.9 percent for the current financial year
The fiscal deficit of the Center at the end of the first half of the current financial year 2024-25 has been 29.4 percent of the target set for the entire financial year. This information was given in the official figures released on Wednesday. According to data released by the Controller General of Accounts (CGA), the fiscal deficit, the difference between the government’s expenditure and revenue in real terms, stood at Rs 4,74,520 crore at the end of September. Whereas in the first half of the last financial year 2023-24, the fiscal deficit was 39.3 percent of the budget estimate.
Target to limit fiscal deficit to 4.9 percent for the current financial year
In the Union Budget, the government has set a target of limiting the fiscal deficit to 4.9 percent of GDP in the current financial year. In the last financial year, fiscal deficit was 5.6 percent of GDP. The government aims to limit the fiscal deficit to Rs 16,13,312 crore during the current financial year. Fiscal deficit in the first half of the financial year was 29.4 percent of the target at Rs 4,74,520 crore.
Net tax revenue in the first half was Rs 12.65 lakh crore
The revenue-expenditure data of the central government for the April-September half of the financial year 2024-25 shows that the net tax revenue for the current financial year was Rs 12.65 lakh crore, or 49 percent of the budget estimate. Net tax revenue collection at the end of September, 2023 was 49.8 percent. Whereas in the first half of the current financial year, the total expenditure of the Central Government has been Rs 21.11 lakh crore i.e. 43.8 percent of the budget estimate. Government expenditure in the same period a year ago was 47.1 per cent of the budget estimate. Of the total expenditure of the government, Rs 16.96 lakh crore was in the revenue account while Rs 4.15 lakh crore was in the capital account.
What is the reason for decline in fiscal deficit?
Aditi Nair, chief economist of rating agency ICRA, said on these figures that the fiscal deficit of the Center has come down to Rs 4.7 lakh crore in the first half of the financial year 2024-25, which was Rs 7 lakh crore in the same period last year. The reason behind this is the annual decline in capital expenditure along with dividend payment by the Reserve Bank of India. Fiscal deficit is the difference between the total expenditure and revenue of the government. It also indicates the total debt raised by the government.
With PTI inputs
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