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New Delhi:

The fiscal deficit of the Center reached 46.5 percent of the target for the entire year in the first seven months of the financial year 2024-25. This information was given in government data on Friday. According to data from the Controller General of Accounts (CGA), the fiscal deficit during the April-October period stood at Rs 7,50,824 crore. The difference between the expenditure and revenue of the government is called fiscal deficit. The deficit in the same period of financial year 2023-24 was 45 percent of the budget estimate.

In the general budget, the government has estimated to bring the fiscal deficit to 4.9 percent of the gross domestic product (GDP) in the current financial year 2024-25. In the last financial year 2023-24, the deficit was 5.6 percent of GDP.

Target of limiting fiscal deficit

Thus, the government aims to limit the fiscal deficit to Rs 16,13,312 crore during the current financial year.

According to the central government’s revenue-expenditure data for the first seven months of financial year 2024-25, net tax revenue was about Rs 13 lakh crore, or 50.5 percent of the budget estimate for the current financial year.

For the previous financial year, the net tax revenue collection at the end of September 2023 was 55.9 percent.

The total expenditure of the central government in the seven months till October this year was Rs 24.7 lakh crore or 51.3 percent of the budget estimate. Expenditure in the same period a year ago was 53.2 percent of the budget estimate.

Of the total expenditure, Rs 20 lakh crore was in the revenue account and Rs 4.66 lakh crore was in the capital account.

Due to this there was improvement in fiscal deficit

ICRA Chief Economist Aditi Nair said about these figures that the government’s fiscal deficit improved due to the annual reduction in RBI’s dividend payment and capital expenditure.

He said that the double installment of tax transfer released to the states reduced the net tax collection of the Government of India in October 2024. Apart from this, fiscal deficit increased on an annual basis due to a sharp jump in revenue expenditure in October 2024 (Rs 2.8 lakh crore in October 2024 vs Rs 1 lakh crore in October 2023).

The CGA data also revealed that of the total revenue expenditure, Rs 5,96,347 crore was for interest payments and Rs 2,48,670 crore was for major subsidies.

The Government of India has transferred Rs 7.22 lakh crore in total receipts to the state governments till October.

(Except the headline, this story has not been edited by the NDTV team and is published directly from a syndicated feed.)

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