Fiscal deficit limited to 21.3% till now

Data showed that the revenue deficit at the end of the period stood at ₹2 lakh crore

Aided by a healthy growth in revenues, India’s fiscal deficit or gap between receipts and spending met through borrowing stood at a modest ₹3.2 lakh crore at the end of July, accounting for 21.3% of the full-year target

The deficit figures appear much better than the previous financial year, when it soared to 103.1% of the estimate, mainly on account of a jump in expenditure to deal with the Covid-19 pandemic. (HT_Print)

In the corresponding period last year, the fiscal deficit had scaled ₹8.2 lakh crore, exceeding the target. Official data released by the Controller General of Accounts (CGA) on Tuesday showed that the Centre’s revenue deficit at the end of the period stood at ₹2 lakh crore or about 18% of the budget estimate. This was around ₹7.1 lakh crore or 117% in the same time a year ago.

In the first four months of this fiscal, Centre’s gross tax revenue stood at ₹6.9 lakh crore, aided by healthy income tax and goods and services tax (GST) collections.

CGA data also showed that capital spending remained at ₹1.28 lakh crore in the first four months of this fiscal, compared to ₹1.11 lakh crore in the year ago period.

Experts pointed out that the government could meet the full year tax collection target but meeting disinvestment target was a challenge.

“With low receipts of ₹8,371 crore so far, it is likely that the disinvestment target of ₹1.75 lakh crore will be missed by a considerable margin, causing the government of India’s fiscal deficit to overshoot the FY22 budget estimate,” said Aditi Nayar, chief economist, Icra.