At the end of the first half of the current financial year 2024-25, the fiscal deficit of the Center was 29.4 percent of the target set for the entire financial year. This information was given in the official data released on Wednesday. According to the data released by the Controller General of Accounts (CGA), the difference between the government’s expenditure and revenue i.e. the fiscal deficit in real terms was Rs 4,74,520 crore at the end of September. Whereas in the first half of the last financial year 2023-24, the fiscal deficit was 39.3 percent of the budget estimate.
Target to limit fiscal deficit to 4.9 percent for the current financial year
In the Union Budget, the government has set a target to limit the fiscal deficit to 4.9 percent of GDP in the current financial year. The fiscal deficit in the last financial year 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 has been 29.4 percent of the target set at Rs 4,74,520 crore.
Net tax revenue stood at Rs 12.65 lakh crore in the first half
The revenue-expenditure data of the Central Government in 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 i.e. 49 percent of the budget estimate. Net tax revenue collection was 49.8 percent at the end of September 2023. At the same time, the total expenditure of the central government in the first half of the current financial year has been Rs 21.11 lakh crore i.e. 43.8 percent of the budget estimate. Government expenditure in the same period a year ago was 47.1 percent of the budget estimate. Out of the total expenditure of the government, 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 decline in fiscal deficit?
On these figures, Aditi Nair, Chief Economist of rating agency ICRA, said that the fiscal deficit of the Center came down 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 decline in capital expenditure on an annual basis along with the dividend payment of the Reserve Bank of India is also contributing to this. Fiscal deficit is the difference between the total expenditure and revenue of the government. It also indicates the total debt to be raised by the government.