India's April-June Fiscal Deficit Reaches 8.1% Of FY25 Target
Net tax revenue collection came in at 21.1% of the target at Rs 5.5 lakh crore in the April-June period.
The Union government's fiscal deficit expanded to 8.1% of the budgetary target for the financial year ending March 2025.
In actual terms, the fiscal deficit is Rs 1.36 lakh crore of the total limit set at Rs 16.85 lakh crore, according to provisional data released on Wednesday by the Controller General of Accounts.
Meanwhile, net tax revenue collection came in at 21.1% of the target at Rs 5.5 lakh crore in the April-June period, amid a rise in income tax collections.
Other Highlights
India recorded Rs 2.9 lakh crore in income tax, whereas corporate tax was reported at Rs 1.7 lakh crore, according to provisional data.
Total expenditure was reported at 20.4% of the full fiscal target, at Rs 9.7 lakh crore,
In terms of capital expenditure, the government spent 16.3% of the target at Rs 1.8 lakh crore for April-June period.
The Union government has set a fiscal deficit target of 4.9% of GDP for FY25, 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.
Strong revenue growth and tepid expenditure growth has resulted in fiscal deficit in Q1 FY25 being 69.93% lower than the same period last year. The impact of FY25 budget proposals will start reflecting on revenue and expenditure after passage of Finance Bill and would start reflecting from August 2024 fiscal numbers, said a research note by India Ratings. The government is expected to achieve its FY25 deficit target, it added.
