India’s Fiscal Deficit comes at 25% of FY24 target at 4.51 lakh crore in June quarter

The figures for the budget deficit in April–May 2023 was 2.10 lakh crore. According to the data, net tax receipts for the months of April through June totaled 4.3 lakh crore, or 18.6% of the annual projection, down from 5.06 lakh crore during the same period last year.

According to information made public by the Controller General of Accounts on July 31, the government’s fiscal deficit grew to 4.51 lakh crore in the April-June quarter of fiscal 2023–24, or 25.3% of the yearly target of 17.87 lakh crore. In comparison to the same quarter last year, the fiscal deficit for the June quarter increased by 21.2%.

The increase was due to an abrupt increase in capital spending, an acceleration of the tax transfer to state governments, and offsetting increases in non-tax receipts. The gap between the government’s total spending and revenue is known as the fiscal deficit. It serves as a gauge for the total amount of borrowings the government will require.

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The figures for the budget deficit in April–May 2023 was 2.10 lakh crore. According to the data, net tax receipts for the months of April through June totaled 4.3 lakh crore, or 18.6% of the annual projection, down from 5.06 lakh crore during the same period last year.

The entire spending from April to June totaled 10.51 lakh crore, which is 23.3% of the yearly objective and less than the 9.48,000 crore spent during the same time previous year.

The government spent more on building infrastructure in the first quarter of this fiscal year than it did in the same period last year, with capital expenditures totaling $2,78,000 crore, or 28% of the annual target.

7.72 lakh crore of the entire expenses went into the income account, and 2.78 lakh crore went toward the capital account. According to the data, 87,035 crore was spent on significant subsidies, while 2,43,705 crore was used to pay interest.

The government set a goal in the Union Budget to reduce the budget deficit from 6.4% of GDP in the previous fiscal year to 5.9% of GDP for the current fiscal year 2023–2024.