NEW DELHI: The country’s fiscal deficit reached 17.2% of the annual target as of the end of July in the current fiscal year (FY25), according to data published by the Controller General of Accounts (CGA) on Friday.
In absolute terms, the fiscal deficit amounted to Rs 2,76,945 crore. In comparison, during the same period in FY24, the deficit was much higher, accounting for 33.9% of the Budget Estimates (BE).
In the Union Budget for 2024, the government set a target to reduce the fiscal deficit to 4.9% of the gross domestic product (GDP) for FY25. This is a decrease from the fiscal deficit of 5.6% of GDP recorded in 2023-24. In monetary terms, the government aims to limit the total fiscal deficit to Rs 16,13,312 crore for the current fiscal year (2024-25). As per the data, the net tax revenue was Rs 7.15 lakh crore, or 27.7 per cent of the BE for the current fiscal.
During the first four months leading up to July, the central government’s total expenditure amounted to Rs 13 lakh crore, which represents 27% of the Budget Estimates (BE). This is a decrease from the 30.7% of BE recorded in the same period last year. Out of the total expenditure, Rs 10,39,091 crore was allocated to the revenue account, while Rs 2,61,260 crore was designated for the capital account.
According to Aditi Nayar, Chief Economist with ICRA, “The outlook for revenue receipts seems fairly favourable, while there may be a miss on capex and disinvestment targets. Nevertheless, expenditure savings typically accumulated by ministries every year are likely to provide additional cushion to offset shortfall from other heads, if needed.
Govt targets fiscal deficit to 4.9% of GDP for FY25
In the Union Budget for 2024, the government set a target to reduce the fiscal deficit to 4.9% of GDP) for FY25. This is a decrease from the fiscal deficit of 5.6% of GDP recorded in FY24. In monetary terms, the government aims to limit total fiscal deficit to Rs 16,13,312 crore for FY25.