Government Fiscal Deficit Reaches 27% Of FY25 Target In April-August

The Union government's fiscal deficit expanded to 27% of the budgetary target at the end of the first five months for the financial year ending March 2025.

The gap between expenditure and revenue during April-August stood at Rs 4.35 lakh crore of the total limit set at Rs 16.85 lakh crore for the ongoing fiscal, according to provisional data released on Friday by the Controller General of Accounts.

The Union government has set a fiscal deficit target of 4.9% of GDP for the financial year ending March 2025, as it aims to continue on its fiscal consolidation path. This is after bettering its deficit target for the last fiscal to 5.6% of GDP.

The total expenditure until August reached Rs 16.52 lakh crore, amounting to 34.3% of the fiscal year's target. Of the total expenditure, interest payments accounted for Rs 4 lakh crore, according to the data.

Meanwhile, revenue receipts were at Rs lakh crore during the first five months of the fiscal 2024-25, which is 32.5% of the fiscal year target.

In the first five months, the government's total expenditure reached Rs 16.5 lakh crore, accounting for 34.3% of the annual target.

Additionally, the revenue deficit until August stood at Rs 1.43 lakh crore, reaching 24.7% of the fiscal year target.