Labor The Centre’s fiscal deficit at the end of the first half of fiscal year 2024-25 was 29.4 per cent of the target set for the entire financial year. This information was given in official figures published on Wednesday. According to data released by the Comptroller General of Accounts (CGA), the fiscal deficit, the difference between government expenditure and revenue in real terms, stood at Rs 4,74,520 crore at the end of September. While in the first half of the last financial year 2023-24, the fiscal deficit was 39.3 percent of the budget estimate.
Objective of limiting the 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 per cent of GDP in the current financial year. In the last financial year, the 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. The fiscal deficit in the first half of the financial year was 29.4 per cent of the target at Rs 4,74,520 crore.
Net tax revenue in the first half was Rs 12.65 lakh crore
The central government’s revenue and expenditure data 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 per cent of the estimate budgetary. Net tax collection at the end of September 2023 was 49.8 percent. While in the first half of the current financial year, the total expenditure of the Central Government was Rs 21.11 lakh crore, i.e. 43.8 per cent of the budget estimate. Public spending in the same period a year ago was 47.1 percent of the budget estimate. Of the total government expenditure, 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 the decrease in the fiscal deficit?
Commenting on these figures, Aditi Nair, chief economist at rating agency ICRA, said the Centre’s fiscal deficit reduced 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 the payment of dividends by the Reserve Bank of India. The fiscal deficit is the difference between total spending and government revenue. It also indicates the total debt collected by the government.
With PTI inputs
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