India’s fiscal deficit for April-December stood at ₹9.14 trillion (₹9,14,000 crore), or 56.7% of the estimate for the financial year, government data showed on Friday.
Net tax receipts for the first nine months of the current financial year were at ₹18.43 trillion (₹18,43,000 crore), or 71.3% of the annual target, compared with ₹17.3 trillion (₹17,30,000 crore) during the same period last year, the data indicated.
India’s financial year runs from April through March.
Government Expenditure Breakdown
The total government expenditure for the nine months stood at ₹32.3 trillion (₹32,30,000 crore), or about 67% of the annual target. Capital expenditure, or spending on building physical infrastructure, was ₹6.85 trillion (₹6,85,000 crore), or 61.7% of the annual goal.
Impact of Slow Spending and Elections
Spending in the current financial year has been relatively slow, primarily due to the national elections. As a result, capital expenditure is expected to fall short of the annual target.
Some economists are forecasting a narrower fiscal deficit than the initial target of 4.9% of GDP for 2024-25 due to lower spending.
The revised estimate for the current year and the target for the next financial year will be unveiled during the annual budget announcement on Saturday.
