India Reaches 95% Of Budgeted Limit As FY24 Fiscal Deficit Closes At 5.63% Of GDP
In actual terms, the fiscal deficit comes up to Rs 16.54 lakh crore of the total limit set at Rs 17.34 lakh crore.
The Union government's fiscal deficit expanded to 95.3% of the budgetary target for the financial year ending March 2024.
In actual terms, the fiscal deficit is Rs 16.54 lakh crore of the total limit set at Rs 17.34 lakh crore,. This brings the government's fiscal deficit for FY24 to Rs 16.53 lakh crore, which is 5.63% of GDP, slightly better than the 5.8% estimated in the budget, according to provisional data released on Friday by the Controller General of Accounts.
In the revised estimates for FY24, the government had projected a fiscal deficit of Rs 17.34 lakh crore, or 5.8% of GDP, in the interim budget tabled on Feb. 1 in Parliament.
Ahead of the full budget in July this year, the lower deficit in FY24 opens the door for an even lower projection of the fiscal deficit, inching the government closer on its fiscal glide path and possibly lower borrowings.
The fiscal glide path outlined by the current government aims to reach 4.5% of the GDP by March 2026.
Meanwhile, net tax collection came in at Rs 23.26 lakh crore in fiscal 2024, slightly above the estimate of Rs 23.23 lakh crore on the back of strong indirect tax revenue and personal taxes.
Corporate tax continued to rise lower than personal taxes, which could be explained by higher dividends, according to an official with knowledge of the matter. India recorded Rs 10.1 lakh crore in income tax, whereas corporate tax closed at Rs 9.11 lakh crore, according to provisional data.
Total expenditure was reported at Rs 44.42 lakh crore, slightly lesser than the target of Rs 44.90 lakh crore.
In terms of capital expenditure, the government came close to its target for fiscal 2024 at Rs 9.48 lakh crore, as against the revised estimated target of Rs 9.5 lakh crore.
The Government of India’s fiscal deficit was contained below the Revised Estimate (RE) for FY24, benefiting from higher than anticipated receipts and lower than estimated revenue spending, with only a marginal miss in the capital expenditure.Aditi Nayar, Chief Economist ICRA
FY24 In a Glance
Revenue receipts stood at Rs 27.28 lakh crore against Rs 26.99 lakh crore of the budgetary estimate of Rs lakh crore, achieving 101% against the budget estimate.
Total expenditure closed at Rs 44.42 lakh crore versus Rs 44.9 lakh crore, attaining 98.9% of revised budget levels.
Revenue deficit remained curtailed at Rs 7.65 lakh crore vs. Rs 8.41 lakh crore reaching 91.0%.
Capex came in at Rs 9.48 lakh crore, as against the revised estimated target of Rs 9.5 lakh crore.
Non-tax revenue came in at Rs 4.01 lakh crore versus Rs 3.75 lakh crore, amounting to 106.9%, buoyed by the surplus dividend from the Reserve Bank of India.
Spend on major subsidies stayed exactly on target for FY24 at Rs 41.35 lakh crore.
FY25 April Fiscal Deficit At 12.5%
On Friday, the government also released data on government finances for the month of April in the ongoing fiscal.
Fiscal deficit came up to Rs 2.10 lakh crore, or 12.5%, in the first month of the current fiscal, as against the full-year target of Rs 16.85 lakh crore.
Capex spend came up to Rs 0.99 lakh crore, or 8.9%, of the target of Rs 11.11 lakh crore. Total expenditure stood at Rs 4.23 lakh crore, or 8.9%.
Spend on major subsidies remained at 5% of the budgeted target at Rs 0.19 lakh crore.
