Fiscal deficit of Centre in April-July at 17.2 pc of full year estimate

New Delhi, Aug 30 (FN Bureau) The central government’s fiscal deficit during April-July period of the current financial year 2024-25 stood at Rs 2,76,945 crore or 17.2% of the full-year Budget estimate, as per monthly data released by Controller General of Accounts (CGA) on Friday. Fiscal deficit refers to the difference between the government’s total revenue and total expenditure. The government received Rs 10,23,406 crore (31.9% of corresponding Budget Estimate or BE 2024-25 of total receipts) in the current fiscal upto July, 2024 comprising Rs 7,15,224 crore tax revenue (Net to Centre), Rs 3,01,796 crore of non-tax revenue and Rs 6,386 crore of non-debt capital receipts. As per official data, a total of Rs 3,66,630 crore was transferred to state governments as devolution of share of taxes by Government of India during April-July period of current fiscal.

Total expenditure incurred by the government during the period under review stood at Rs 13,00,351 crore (27.0% of corresponding BE 2024-25), out of which Rs 10,39,091 crore is on revenue account and Rs 2,61,260 crore is on capital account. Out of the total revenue expenditure during the first four months of the current fiscal, Rs 3,27,887 crore was on account of interest payments and Rs 1,25,639 crore was on account of major subsidies. Commenting on fiscal deficit numbers, ICRA chief economist Aditi Nayar said that the lower fiscal deficit was primarily on account of contraction in capital expenditure during the Election months and substantial dividend received from the RBI. “The outlook for revenue receipts seems fairly favourable, while there may be a miss on capex and disinvestment targets. Nevertheless, expenditure savings typically accumulated by ministries every year are likely to provide additional cushion to offset shortfall from other heads, if needed,” she said.