September 30th 2024.
The latest government data revealed that the Centre's fiscal deficit during the first five months of the current financial year had reached 27 percent of the full-year target. This means that there was a difference of Rs. 4,35,176 crore between the amount of money spent and the amount of revenue earned. The Controller General of Accounts released these figures on Monday.
Comparing it to the corresponding period in 2023-24, the deficit in absolute terms was at 36 percent of the budget estimates. The government had aimed to bring down the fiscal deficit to 4.9 percent of the gross domestic product (GDP) in the current financial year, as stated in the Union Budget. This was a decrease from the previous year's deficit of 5.6 percent of the GDP.
In terms of numbers, the government plans to limit the fiscal deficit to Rs. 16,13,312 crore in the current fiscal. The Controller General of Accounts also shared the revenue-expenditure data for the first five months of 2024-25. It showed that the net tax revenue collected during this period was Rs. 8.7 lakh crore, which amounts to 33.8 percent of the budget estimates.
This is slightly lower than the collection at the end of July 2023, which was 34.5 percent of the budget estimates. The central government's total expenditure between April and August was Rs. 16.5 lakh crore. This amounts to 34.3 percent of the budget estimates, which is lower than the expenditure in the same period last year, which was 37.1 percent of the budget estimates.
Out of the total expenditure, Rs. 13,51,367 crore was spent on the revenue account, while Rs. 3,00,987 crore was spent on the capital account. The revenue expenditure included an interest payment of Rs. 4,00,160 crore. In simpler terms, fiscal deficit is the difference between the total amount of money spent by the government and the amount of revenue it earns. It is an important indicator of the government's borrowing needs.
These figures show that the government is on track to meet its target of reducing the fiscal deficit to 4.9 percent of the GDP. However, it is important to keep a close eye on the deficit in the coming months to ensure that it stays within the projected limit. This will help the government to manage its finances effectively and ensure economic stability.
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