The Centre’s fiscal deficit stood at 46.5% of the full year target at the end of the first seven months of the fiscal year 2024-25, government data showed on Friday (November 29, 2024).
In absolute terms, the fiscal deficit – the gap between government expenditure and revenue – stood at ₹7,50,824 crore in the April-October period, according to data released by the Controller General of Accounts (CGA).
The deficit was 45% of budget estimates (BE) in the corresponding period 2023-2024.
In the Union Budget, the government expects to reduce the fiscal deficit to 4.9% of gross domestic product (GDP) in the current fiscal year 2024-25. The deficit was 5.6% of GDP in 2023-2024.
In absolute terms, the government aims to keep the fiscal deficit at ₹16,13,312 crore during the current fiscal.
The Union government’s revenue and expenditure data for the first seven months of 2024-25 showed that net tax revenue was around ₹13 lakh crore, or 50.5 per cent of the budget estimate for the current fiscal.
Net tax revenues stood at 55.9% at the end of September 2023.
The central government’s total expenditure in the seven months to October was ₹24.7 lakh crore or 51.3% of the budget estimate. Expenditure amounted to 53.2% of the budget estimate in the previous year period.
Of the total expenditure, ₹20 lakh crore was in the revenue account and ₹4.66 lakh crore in the capital account.
The budget deficit is the difference between the government’s total expenditure and revenue. It is an indication of the total financing that the government needs.
Published – Nov 29, 2024 5:07 PM IST
