NEW DELHI: Healthy tax collection and prudent expenditure has helped the government to contain its fiscal deficit for the first half of this fiscal year at Rs 5.27 lakh crore, about 35% of the Budget estimates.
According to data released by the Controller General of Accounts (CGA) on Friday, the Centre has received Rs 10,99,166 crore till September 2021, comprising Rs 9,20,692 crore tax revenue, Rs 1,60,356 crore of non-tax revenue and Rs 18,118 crore of non-debt capital receipts.
The revenue receipts account for 60.4% of the Budget estimate compared to 27.3% last year.
The net tax revenue for the period stands at 59.6% of the Budget estimate as compared to 28% during the same period last year.
Sharp increase in customs duties (129.64 %), followed by corporate tax (105.14 %) and 0.08% year-on-year growth in state’s share in central taxes were mainly responsible for it, said Devendra Pant, India Ratings and Research.
The ministry said the net debt capital receipts consists of recovery of loans Rs 9,003 crore and miscellaneous capital receipts of Rs 9,115 crore.
The government’s total expenditure during the period stood at 46.7% of the Budget estimates against 48.6% last year. Of the total expenditure, the government said the expenditure incurred by government at Rs 16,26,017 crore.
Of this, Rs 13,96,666 crore is on the revenue account and Rs 2,29,351 crore is on the capital account. Of the total revenue expenditure, Rs 3,63,757 crore is on the account of interest payments and Rs 1,80,959 crore on the account of major subsidies.
The government said Rs 2,60,146 crore has been transferred to state governments as devolution of share of taxes by government up to September, 2021.
For the current financial year, the government expects the deficit at 6.8% of GDP or at Rs 15,06,812 crore.
Meanwhile, growth in India’s eight core infrastructure sectors eased to 4.4% in September from 11.5% in the preceding month as the low base effect ebbed.
Production of coal grew 8.1%, cement 10.8%, and steel 3%, while crude oil output contracted 1.7%.