The Indian government’s fiscal deficit has surpassed ₹6 trillion, which is a third of the ₹17.9 trillion estimated in the union budget for FY24, according to data from the Comptroller General of Accounts (CGA). This gap between spending and receipts met through borrowings stood at 33.9% of the full year target, thanks to strong tax and non-tax revenue receipts. Overall revenue receipts in the first four months of this fiscal were ₹7.6 trillion or 29% of the full year target.
The Centre’s revenue deficit, which is the gap between revenue receipts and revenue spending, was ₹3 trillion up to the end of July, accounting for 35% of the full year target.
Up to July, the central government collected ₹5.8 trillion in tax revenue, which is a quarter of the ₹23.3 trillion full year target. Corporate tax collection was slightly lower than the amount collected in the same time a year ago at ₹1.76 trillion, while personal income tax collection and central goods and services tax (CGST) collection exceeded the amounts collected from these sources in the same period a year ago at ₹2.57 trillion and ₹2.73 trillion respectively. Union excise duty collection in the first four months of the current fiscal was below the amount collected in the same time a year ago at ₹76,200 crore.
Among non-tax revenue receipts, a major highlight is the improvement in profits and dividends received by the central government. Up to end of July, receipts by way of dividends and profits exceeded ₹1 trillion, more than the full year budgeted target of ₹91,000 crores. The Centre collected ₹5,465 crores from disinvestment till July end against the full year target of ₹51,000 crores.
The Centre also transferred ₹3 trillion to state governments up to end of July as devolution of taxes, which is ₹1 trillion more than the amount transferred in the same time a year ago.