Fiscal Deficit Widens To 45% Of FY24 Budgeted Limit

The government's fiscal deficit touched 45% of the full-year target for the period between April and October in the current financial year.

According to data from the Controller General of Accounts, the fiscal deficit was slightly less than the 45.6% recorded in the year-ago period. In actual terms, the current year's deficit widened to Rs 8 lakh crore against the full-year target of Rs 17.86 lakh crore.

Speaking ahead of the data release on Wednesday, Economic Affairs Secretary Ajay Seth expressed confidence that the government will achieve its FY24 fiscal deficit target of 5.9% of the GDP and is committed to lowering the fiscal deficit to 4.5% by FY26.

Ahead of the supplementary demand for grants to be tabled in the winter session of the parliament in December, government expenditure stood at Rs 24 lakh crore out of the Rs 45 lakh crore budgetary allocation.

Of this, government spending on capex stood at 54.7% or Rs 5.46 lakh crore, of the Rs 10 lakh crore allocation for the full year. The level of capex during the same period last year was 45.7%. Last month, capex surged to Rs 1.16 lakh crore in September, which was the highest-ever monthly spend, while October saw a Rs 56,296 crore monthly increase.

• Revenue receipts stood at 59.6% of the budgetary estimate versus 61.2% during the same period last year.

• Total expenditure: 53.2% vs 54.3%.

• Revenue deficit: 32.1% vs 38.8%.

• Capex: 54.7% vs 54.6%.

• Net tax revenue: 55.9% vs 60.5%.

• Non-tax revenue: 88.1% vs 66.3%, buoyed by a surplus RBI dividend earlier in the year.

• Spend on major subsidies: 62% vs 75%, led by the urea-based fertiliser subsidy.