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Fiscal deficit touches Rs 5.41 lakh crore between April and August

Fiscal deficit touches Rs 5.41 lakh crore between April and August

As per the Finance Ministry, the Centre is targeting a fiscal deficit of Rs 16.61 lakh crore for FY23, or 6.4 percent of GDP.

As per the data, net tax receipts rose to about Rs 7 lakh crore while the total expenditure was around Rs 13.9 lakh crore. As per the data, net tax receipts rose to about Rs 7 lakh crore while the total expenditure was around Rs 13.9 lakh crore.

India's fiscal deficit for five months in this fiscal from April to August has touched Rs 5.42 lakh crore ($66.56 billion), which is 31.1 per cent of the total annual estimates, data released by the Controller General of Accounts on Friday showed. As per the data, net tax receipts rose to about Rs 7 lakh crore while the total expenditure was around Rs 13.9 lakh crore. As per the Finance Ministry, the Centre is targeting a fiscal deficit of Rs 16.61 lakh crore for FY23, or 6.4 percent of GDP.

Fiscal Deficit 2022023 (Figures in Rs crore)

Months

 

Monthly

 

Year to date Monthly  Year to date 
  2022-23  2022-23  2021-22 2021-22
April  74,846 74,846  78,699 78,699 
May 129,075  203,921 44,475  123,174 
June 147,950  351,871 151,071  274,245 
July  -11,040  340,831  46,898 321,143 
August 200,770  541,601  146,866  468,009 

Source: Controller General of Accounts

The fiscal deficit in the first five months of FY22 was Rs 4.68 lakh crore. As such, the fiscal deficit in April-August of the current financial year is 15.7 per cent higher on a year-on-year basis. 

During her Budget speech in February, Finance Minister Nirmala Sitharaman had set the fiscal deficit target to 6.4 per cent of GDP, Rs 16.61 lakh crore, for this fiscal, 2022023, as compared to 6.7 per cent in 2021-22. 

After recording a surplus of Rs 11,040 crore in July, the Centre posted a fiscal deficit of Rs 2.01 lakh crore in August. The July figures were recorded for the first time in 28 months after the slump during the pandemic period. The last time the central government’s monthly accounts were in surplus was in March 2020. 

The total expenditure was recorded Rs 2.63 lakh crore in August, which has dropped by 3.3 per cent. The capital expenditure was up by 0.5 per cent from the last year to Rs 43,658 crore. 

There was a rise in the expenditure in August as the Centre released Rs 1.17 lakh crore to states as tax devolution on August 10 mostly after assessing that its collections were doing well with business activities going up.

Total Expenditure (Figures in Rs. in Crore) 

Months

 

Monthly

 

Year to date Monthly  Year to date 
  2022-23  2022-23  2021-22 2021-22
April  274829  274829 226690 226690 
May 310945 585774  251271  477961
June 362137 947911  343683  821644
July  178834 1126745  182796  1004440 
August 263281 1390026  272241 1276681 

Source: Controller General of Accounts

But the net tax revenue fell 70.7 per cent year-on-year to Rs 33,882 crore. The non-tax revenue jumped 213.2 per cent to Rs 27,221 crore.  

In a nutshell, the Centre's total receipts stood at Rs 8.48 lakh crore in August, up 4.9 per cent, while the total expenditure was 8.9 per cent higher at Rs 13.90 lakh crore. 

Despite the spike in fiscal deficit, the government has also cut its market borrowing for the financial year by Rs 10,000 to Rs 14.21 lakh crore, as per its borrowing calendar for the fiscal second half. 

 

Published on: Sep 30, 2022, 4:51 PM IST
Posted by: Basudha Das, Sep 30, 2022, 4:47 PM IST