India's Fiscal Deficit Stood At Rs 8.037 Lakh Crore In First Seven Months Of Fiscal Year

Government data released on Thursday (30 November) revealed that India's fiscal deficit from April to October of this fiscal year reached Rs 8.037 lakh crore, or 45 per cent of annual estimates.

The fiscal deficit marginally narrowed from the 45.6 per cent that was reported in the corresponding period the previous year.

Total receipts for the period of April to October stood at Rs 15.91 lakh crore, and the total spending during the same period amounted to Rs 23.94 lakh crore.

These figures represent 58.6 per cent and 53.2 per cent of the budget target for this fiscal year, respectively.

The total revenue receipts amounted to Rs 15.67 lakh crore, with tax revenue contributing Rs 13.02 lakh crore and non-tax revenue adding Rs 2.66 lakh crore.

Both tax and non-tax revenues made up 55.9 per cent and 88.1 per cent of the budgeted estimate, respectively.

Compared to the last fiscal year when tax revenue was 60.5 per cent of the budget estimate, it was slightly less this year. However, non-tax revenue saw a significant increase from the previous year's 66.3 per cent of the budget forecast.

The Reserve Bank of India sanctioned the transfer of Rs 87,416 crore as surplus to the central government, resulting in a significant increase in non-tax revenue.

Data indicated that the revenue deficit stood at Rs 2.80 lakh crore, accounting for 32.1 per cent of the budget target for the fiscal year.

During the presentation of this fiscal year's Union budget, Finance Minister Nirmala Sitharaman said that the country is targeting to reduce the fiscal deficit to 5.9 per cent of the gross domestic product, down from 6.4 per cent in the previous financial year.

The reduced fiscal deficit arises amidst growing conjecture that the Narendra Modi-led government, in its pursuit of a third term following next year's Lok Sabha elections, will soon need to implement a range of fiscal strategies, especially to control the soaring inflation rate.

New Delhi allocated approximately Rs 2.32 lakh crore towards significant subsidies like food, fertilisers, and petroleum.

This spending accounted for 62 per cent of the revised annual target, which is less than the 75 per cent of the budgeted expenditure during the same time frame the previous year.