HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
Fiscal deficit touches 27% of full-year target in Apr-Aug period of FY25
Oct-01-2024

The data released by the Controller General of Accounts (CGA) has showed that the Centre’s fiscal deficit - the gap between expenditure and revenue - at the end of the first five months (April-August) of the current fiscal (FY25) touched 27 per cent of the full-year target. The deficit stood at 36 per cent of the Budget Estimates (BE) in the corresponding period of 2023-24.

In absolute terms, the fiscal deficit was at Rs 4,35,176 crore as of August-end. In the Union Budget, the government projected to bring down the fiscal deficit to 4.9 per cent of the gross domestic product (GDP) in the current financial year. The deficit was 5.6 per cent of the GDP in 2023-24. In absolute terms, the government aims to contain the fiscal deficit at Rs 16,13,312 crore during the current fiscal.

The central government’s total earnings during the April-August period of FY25 stood at Rs 12.17 lakh crore, which is 38 per cent of the full year target. The total receipts included Rs 8.73 lakh crore tax revenue (net to centre), Rs 3.34 lakh crore non-tax Revenue and Rs 8,866 crore of non-debt capital receipts. Rs 4,55,717 crore has been transferred to State Governments as Devolution of Share of Taxes by Government of India upto this period which is Rs 73,235 crore higher than the previous year.

The central government’s total expenditure in the five months through August stood at Rs 16.5 lakh crore or 34.3 per cent of BE. The expenditure was 37.1 per cent of the BE in the year-ago period. Of the total expenditure, Rs 13,51,367 crore was in the revenue account and Rs 3,00,987 crore was in the capital account. Out of the total revenue expenditure, Rs 4,00,160 crore was towards interest payments and Rs 1,78,625 crore is on account of Major Subsidies.


  RELATED NEWS >>