Govt’s fiscal deficit rises to 39.3% of annual target in first half of FY24

Central government’s fiscal deficit touched 39.3 per cent of the full year target in the first half of the current financial year, slightly higher than 37.3 per cent recorded in the year-ago period.

In actual terms, the fiscal deficit or the gap between expenditure and revenue worked out at Rs 7.02 lakh crore at the end of September 2023, showed data released by the Controller General of Accounts (CGA).

In the Union Budget, the government projected to bring down the fiscal deficit to 5.9 per cent of the gross domestic product (GDP) in the current 2023-24 financial year.

The fiscal deficit was 6.4 per cent of the GDP in 2022-23 against the earlier estimate of 6.71 per cent.

The tax revenue was at Rs 11.60 lakh crore or 49.8 per cent of the annual target. During April-September 2022-23, the net tax collection was 52.3 per cent of that year’s annual Budget Estimate (BE).

Centre’s total expenditure was Rs 21.19 lakh crore or 47.1 per cent of BE of 2023-24, marginally higher than 46.2 per cent of BE 2022-23.