India's fiscal deficit for April-May FY25 stands at Rs 50,000 crore, core sector output hits 6.3% in May

India’s fiscal deficit for the first two months of FY25 stood at Rs 50,615 crore, or 3 percent of the estimate for the whole year, according to data released by the Controller General of Accounts (CAG) on June 28. 

Net tax revenues in April-May were at Rs 3.19 lakh crore, or 12 percent of the annual target, compared to Rs 2.78 lakh crore in the same period last year, according to the data. 

The revenue receipts, however, exceeded the expenditure, resulting in a surplus of Rs 90,923 crore, the CGA data showed. Higher tax revenue and the RBI dividend have kept the revenue receipts at 19 percent of the budgeted estimates for April-May FY25 period, compared to around 15 percent in the corresponding period last year. 

Total expenditure by the government during the period was Rs 6.23 lakh crore, or about 13 percent of the annual goal, compared with 6.26 lakh crore in the same period last year. Government spending in April and May was impacted due to the general elections. 

In the Interim Budget, the government set a fiscal deficit target of 5.1 percent of GDP for this fiscal year, down from a revised 5.6% in the previous year. 

Core sector growth up in May 

The combined Index of Eight Core Industries increased by 6.3 percent in May compared to last year, the Ministry of Commerce and Industry said on June 28. Production of electricity, coal, steel, natural gas and refinery products recorded positive growth in May 2024. 

The index of core industries measures the combined and individual performance of production of eight core industries, which include cement, coal, crude oil, electricity, fertilisers, natural gas, refinery products and steel. 

The ministry also said that the final growth rate of the Index of Eight Core Industries for February 2024 stands at 7.1 percent. The cumulative growth rate of core industries during April to May 2024-25 was 6.5 percent compared to the corresponding period of last year. 

“The production of electricity, coal, steel, natural gas and refinery products recorded positive growth in May 2024,” the Ministry of Commerce & Industry said in a statement. 

(With inputs from agencies)