PTI, New Delhi
The country’s fiscal deficit, which is the gap between central government revenue and expenditure, has reached Rs 1.36 lakh crore in the first quarter of the current financial year. This is 8.1 percent compared to the estimate set by the government for the entire financial year. This matter has come to light from the statistics released by the Accountant General on Wednesday.
Fiscal deficit was recorded at 25.3 percent in the April-June quarter last year compared to the annual estimate. According to the recently presented Union Budget on July 23, the fiscal deficit target has been fixed at Rs 16.13 lakh crore. A hefty dividend of Rs 2.11 lakh crore approved by the Reserve Bank will help the central government keep the deficit under control. Additionally, deficit control will have the added benefit of increased revenue collection and no increase in provision for capital expenditure.
The revenue target for 2024-25 has been revised up to Rs 31.3 lakh crore as against Rs 30 lakh crore in the interim budget, while capital expenditure has been kept unchanged at Rs 11.11 lakh crore.
Overall, the total revenue receipts of the central government during the quarter from April to June 2024 stood at Rs 8.34 lakh crore, while the total expenditure during the same period stood at Rs 9.70 lakh crore. This ratio of receipts and expenditure is 27.1 percent and 20.4 percent respectively of the budgetary target set for the financial year. Net tax revenue collection at the end of June 2023 is 18.6 percent higher than last year’s estimate, while expenditure is over 23 percent. Of the total expenditure, Rs 7.88 lakh crore has been spent on revenue account and Rs 1.81 lakh crore on capital account.
Finance Minister Nirmala Sitharaman, in her budget speech, has committed to bring down the fiscal deficit to 4.9 percent of gross domestic product (GDP) in 2024-25 and to 4.5 percent in fiscal 2025-26. Fiscal deficit was recorded at 5.6 percent of GDP in FY 2023-24.
