New Delhi: The central government’s fiscal deficit was only at 3 per cent of the annual estimates at May-end 2024-25, the first two months of the financial year during which model code of conduct was in place due to Lok Sabha elections.
The fiscal deficit or the gap between the government’s expenditure and revenue was 11.8 per cent of Budget Estimates (BE) of 2023-24 in the first two months of the previous financial year.
For the current financial year (2024-25), the government estimates the fiscal deficit at 5.1 per cent of the GDP, or Rs 16,85,494 crore.
According to data released by the Controller General of Accounts (CGA), fiscal deficit during April-May 2024 was Rs 50,615 crore or 3 per cent of the BE 2024-25. In the corresponding period of the last fiscal it was 11.8 per cent of that year’s BE.
Net tax revenue was Rs 3.19 lakh crore or 12.3 per cent of BE 2024-25. In the corresponding period it was 11.9 per cent of BE 2023-24.
Total expenditure at May-end 2024 was Rs 6.23 lakh crore or 13.1 per cent of this fiscal BE. In the year-ago period it was 13.9 per cent of BE.
Generally, the government refrains from making expenditure on new projects when the election commission puts in place model of conduct.
The central government’s fiscal deficit during 2023-24 at 5.6 per cent of the GDP was better than previous estimates of 5.8 per cent on account of higher revenue realisation and lower expenditure.
As per the Fiscal Responsibility & Budget Management (FRBM) Act, the government plans to achieve a fiscal deficit of 4.5 per cent in 2025-26.
PTI
