India’s fiscal deficit during April-November 2022 stood at Rs 9.78 lakh crore, or 58.9 per cent of the full-financial year target, according to the latest official data released on Friday. In the corresponding period last year, the deficit had stood at 46.2 per cent of the full-FY22 target.
The fiscal deficit is the difference between expenditure and revenue of the government.
According to the latest data from the Controller General of Accounts (CGA), the Centre’s total expenditure during April-November 2022 stood at Rs 24,42,787 crore, which is 61.9 per cent of the FY23 Budget Estimate of Rs 39,44,909 crore.
The government’s total receipts stood at Rs 14,64,633 crore in the current financial year 2022-23 till November. It is 64.1 per cent of the full financial year target of Rs 22,83,713 crore.
Tax and non-tax revenues were 63.3 per cent and 73.5 per cent of the FY23 Budget Estimate, narrower than 73.5 per cent and 91.8 per cent in year-earlier period.
Revenue deficit stood at 5.73 lakh crore rupees or 57.8 per cent of the fiscal year’s budget target, data showed.
Aditi Nayar, chief economist at ICRA, said, “In April-November FY2023, the Government of India’s fiscal deficit widened considerably to Rs 9.8 trillion from Rs 7.0 trillion in the first eight months of FY2022, with net tax revenues reporting a moderate growth of 8 per cent, amidst an 11 per cent contraction in non-tax revenues, 11 per cent rise in revenue expenditure, and high 63 per cent expansion in capex."
She added that a mild YoY dip in the gross tax revenues in November 2022, led by corporation tax and excise duty, combined with the release of a double tranche of central tax devolution to the states, led the net tax revenues to report a transient contraction in that month.
“We expect the total receipts of the GoI in FY2023 to exceed the BE by an aggregate of Rs 1.5 trillion. Based on this, we estimate the extent of overshoot in the fiscal deficit at around Rs 0.8 trillion for FY2023. As a proportion of GDP, the fiscal deficit in FY2023 is unlikely to exceed the FY2023 BE of 6.4 per cent, on a higher nominal GDP (ICRA exp: Rs. 272.1 trillion) vis-à-vis the budgeted figure (Rs. 258 trillion)," Nayar said.
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