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NEW DELHI — The Central government's fiscal deficit in the first four months (April-July) of the current financial year stands at INR 2.77 lakh crore which works out to 17.2 per cent of the full-year target and is lower than the corresponding figure of 33.9 per cent in the same period last year, according to official data released on Friday.
The data showed that net tax receipts for the period stood at INR 7.15 lakh crore, or 27.7 per cent of the annual target, which is higher compared with INR 5.83 lakh crore for the same period last year.
The total government expenditure during the period was INR 13 lakh crore or about 27 per cent of the annual target.
"The Government of India's fiscal deficit more than halved to INR 2.8 lakh crore or 18 per cent of the FY 2025 budget estimate in April-July FY2025, from INR 6.1 lakh crore in April-July FY2024," ICRA chief economist Aditi Nayar said.
Finance Minister Nirmala Sitharaman has fixed the fiscal deficit at 4.9 per cent of GDP in the Union Budget 2024-25 down from 5.6 per cent in 2023-24, as part of the government’s policy of sticking to the fiscal consolidation path.
"The gross and net market borrowings through dated securities during 2024-25 are estimated at INR 14.01 lakh crore and INR 11.63 lakh crore respectively. Both will be less than that in 2023-24," she said.
The reduced borrowings by the government will leave more money in the banking system for companies to borrow for investments which will help to spur growth and create more jobs. Sitharaman said that for FY 2024-25, the total receipts other than borrowings and the total expenditure are estimated at INR 32.07 lakh crore and INR 48.21 lakh crore, respectively.
The net tax receipts are estimated at INR 25.83 lakh crore.
"The fiscal consolidation path announced in 2021 has served our economy very well, and we aim to reach a deficit below 4.5 per cent next year," the Finance Minister said in her budget speech.