NEW DELHI: Central government’s fiscal deficit increased 67 per cent to Rs 2 lakh crore owing to slow growth in revenue receipt and a 23% growth in expenditure. The Centre’s fiscal deficit has reached 12.3% of the budget target in the first two months of the current financial year, according to data released by the Comptroller General of Auditors (CGA). Last year during the same time, the fiscal deficit was Rs 1.2 lakh crore.
The full-year budget target for the fiscal deficit is Rs 16.61 lakh crore, which is 6.4% of the GDP. The net revenue collection of the centre in the first two months has been Rs 3.7 lakh crore, which is 16.2% of the budget target of Rs 22 lakh crore. The Centre’s revenue receipts include net tax revenue, dividends from PSU banks, RBI and CPSEs.
The Centre’s gross tax collection during the April-May 2022 period surged by 29% to Rs 4 lakh crore compared to Rs 3.12 lakh crore in the same period last year. The net tax collection (gross tax minus states share) during the period was Rs 3.1 lakh crore, registering a growth of 30%. Total expenditure during the period also increased 23 per cent year-on-year to Rs 5.85 lakh crore.
Of that revenue, expenditure was Rs 4.8 lakh crore and capital expenditure was Rs 1.07 lakh crore. The capital expenditure, which is money spent on the creation of assets and infrastructure, increased by 70% compared to the first two months of 2021-22 when the government spent Rs 63,000 crore. Meanwhile, the growth of eight core sector industries was up 18.1% in May as against 16.4% in the same month last year, says government data.