India’s fiscal deficit, the difference between revenue and expenditure, stood at ₹3.41 lakh crore in April-July, accounting for 20.5% of the full-year target, government data released on Wednesday showed.
The fiscal deficit for the same period last year had accounted for 21.3% of the FY22 target. It indicates the total borrowing that are needed by the government.
Net tax receipts stood at ₹6.66 lakh crore while total expenditure was ₹11.27 lakh crore, the data from the Controller General of Accounts (CGA) showed.
The country’s fiscal deficit is projected at 6.4% of the GDP for this fiscal ending March 2023 as against 6.71% for the previous year.
Read More:-Zomato launches ‘Intercity legends’: Now order food from other cities, here’s how it will work
SBI Research in its weekly report said that India’s fiscal deficit is expected to be around 6.5% of gross domestic product, against the Budget estimate of 6.4%.
“Tax revenue has been robust with record high GST revenues which have been possible because of increased compliance and higher economic activity. On the expenditure side, Government has incurred higher capital expenditure which bodes well for our growth potential,” the report said.
Read More:-Taj Mahal to be renamed as Tejo Mahalaya? Agra Municipal Corporation to discuss proposal
It mentioned that the government has announced several measures in this financial year to arrest rising inflation, including oil excise duty cuts, additional fertilizer and gas subsidies resulting in increased expenditure.
“However, windfall gain tax and additional tax revenue owing to GST over and above the budget are expected to provide relief to fiscal situation,” it added.
