The Centre’s year debt increased to 50.4 per cent of the FY22 target in April-December 2021, data released on January 31 by the Controller General of Accounts showed a massive upsurge in tax assemblages as well as capital expenditure for December 2021.
The deficit figures in the existing financial year till November seem considerably sounder than the previous financial year when it had aviated to 135.1 per cent of the estimates principally on account of a jump in expenditure to deal with the COVID-19 pandemic.
In April-November 2021, the fiscal deficit had amounted to 46.2 per cent of the full-year target.
The Economic Survey for 2021-22, tabled today, said the Centre was “well on track” to meet its fiscal deficit target of 6.8 per cent of the Gross Domestic Product (GDP).
The fiscal deficit for 2020-21 stood at 9.3 per cent of the gross domestic product (GDP), more promising than 9.5 per cent projected in the adjusted estimates in the Budget in February. The tax (net) revenue was at 73.5 per cent of the BE of 2021-22. It was only 42.1 per cent of BE 2020-21 in the corresponding period of last fiscal.
The latest numerals on the government’s finances come a day before the 2022 Budget is presented in Parliament by Finance Minister Nirmala Sitharaman. The CGA data further said the central government’s total expenditure at the end of November stood at Rs 20.74 trillion or 59.6 per cent of this year’s BE.
For December 2021, the Centre posted a fiscal deficit of Rs 63,752 crore, down 23.2 per cent from December 2020. This took the fiscal deficit for April-December 2021 in absolute terms to Rs 7.59 lakh crores.