New Delhi: The Centre’s fiscal deficit at the end of the eighth month of financial year 2024-25 touched 52.5 per cent of the full-year target, government data showed Tuesday.
In absolute terms, the fiscal deficit — the gap between the government’s expenditure and revenue — was about Rs 8.47 lakh crore during the April-November period, according to the data released by the Controller General of Accounts (CGA).
In the Union Budget, the government projected to bring down the fiscal deficit to 4.9 per cent of gross domestic product (GDP) in the current 2024-25 financial year. The deficit was 5.6 per cent of the GDP in 2023-24.
In absolute terms, the government aims to contain the fiscal deficit at Rs 16,13,312 crore during the current fiscal.
The revenue-expenditure data of the Union government for the first eight months of 2024-25 showed that the net tax revenue was about Rs 14.43 lakh crore.
The central government’s total expenditure in the eight months through November stood at Rs 27.47 lakh crore or 56.9 per cent of the budget estimate.
Of the total expenditure, Rs 22.27 lakh crore was in the revenue account and Rs 5.13 lakh crore in the capital account.
Out of the total revenue expenditure Rs 6,58,494 crore is on account of interest payment and Rs 2,79,211 crore is on account of major subsidies.
A fiscal deficit is the difference between the total expenditure and revenue of the government. It is an indication of the total borrowing needed by the government.
Icra Chief Economist Aditi Nayar said the anticipated miss in the capex target is expected to offset any shortfall on account of disinvestment and taxes, as well as the impact of the recent supplementary demand for grants.
Accordingly, Icra expects the fiscal deficit to mildly trail the 2024-25 estimate of Rs 16.1 lakh crore or 4.9 per cent of GDP.
PTI
