India's fiscal deficit in the first 10 months through January stood at Rs 9.85 lakh crore ($137.05 billion), or 128.5% of the revised budgeted target for the current fiscal year, government data showed on Friday. It is an increase from Rs 7.70 lakh crore in the same period in the previous financial year. Net tax receipts in the April-January period were Rs 9.98 lakh crore, while total expenditure was Rs 22.68 lakh crore, the data showed.
According to the data, the total spending in the April-January period was Rs 22.68 lakh crore, an increase from Rs 20.01 lakh crore from the previous year. The fiscal deficit in January stood at Rs 53,700 crore as against Rs 69,400 crore in the previous year.
The government wants to contain the fiscal gap at 3.3 per cent of the GDP in the year ending March 2020. Finance Minister Nirmala Sitharaman set the fiscal deficit target of 3.5 per cent of GDP in the year ending March 2021.
India missed the fiscal deficit target for third year in a row. The shortfall was pushed to 3.8 per cent of the GDP against 3.3 per cent that was previously planned.
The government predicted a real economic growth of 6-6.5 per cent in the fiscal year beginning April 1. However, it also stated that this could mean high fiscal deficit.
Meanwhile, the Nationat Statistical Office on Friday stated that the Indian economy showed a slight uptick in the December quarter and grew at 4.7 per cent. This breather comes after Indian economy growth fell for six quarters straight.
Additionally, the eight core industries grew by 2.2 per cent on annual basis during January. The rise in production came as sector such as coal, steel, cement and refinery products witnessed an expansion.
(With agency inputs)