The fiscal deficit of the Union government widened to Rs 6.06 lakh crore during April-July from Rs 4.51 lakh crore in April-June, according to data from the Controller General of Accounts (CGA) on Thursday. This represents 33.9 per cent of the full-year target of Rs 17.87 lakh crore set for the current financial year 2022-23. In comparison, the fiscal deficit for April-July 2022 stood at 20.5 per cent of the target for 2022-23.
The fiscal deficit is the variance between the government’s total expenditure and revenue, serving as an indicator of its borrowing requirements. For the fiscal year 2023-24, the Centre has set a fiscal deficit goal of 5.9 per cent of the GDP, down last fiscal year’s 6.4 per cent.
The government also released the Monthly Account report up to July 2023.
It showed that the Government of India has received Rs 7,75,107 crore until July 2023, 28.5 per cent of the corresponding BE 2023-24 of total receipts. This includes Rs 5,82,585 crore of tax revenue (net to Centre), Rs 1,78,804 crore of non-tax revenue, and Rs 13,718 crore of non-debt capital receipts. Non-Debt Capital Receipts comprise the recovery of loans (Rs 8,253 crore) and miscellaneous capital receipts (Rs 5,465 crore). Rs 3,09,521 crore has been transferred to State Governments as Devolution of Share of Taxes by the Government of India up to this period, which is Rs 1,08,413 crore higher than the previous year.
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Notably, the Centre’s finances faced a setback in July, with a monthly fiscal deficit of Rs 1.54 lakh crore, the CGA data showed, a stark contrast to a fiscal surplus of Rs 11,040 crore in the same month last year. This reversal resulted in a 77.7 per cent increase in the fiscal deficit for April-July 2023-24 compared to the same period in 2022-23.
The total expenditure incurred by the Government of India stood at Rs 13,80,700 crore, 30.7 per cent of the corresponding BE 23-24, with Rs 10,63,621 crore on the revenue account and Rs 3,17,079 crore on the capital account. Out of the Total Revenue Expenditure, Rs 2,99,889 crore is attributed to interest payments, and Rs 1,40,996 crore is accounted for by major subsidies.