2023-09-29 11:29:40
In absolute terms, the fiscal deficit touched Rs 6.43 lakh crore between April and August, compared with Rs 5.42 lakh crore a year earlier. Until July, the Centre’s fiscal deficit had touched 33.9% of the annual target, sharply higher than 20.5% a year earlier.
Capital spending jumped 48% between April and August from a year earlier to Rs 3.74 lakh crore, higher than the budgeted annual rise of about 36%, as the government kept pushing such productive expenditure to spur economic growth.
Revenue expenditure rose 14.1% year on year until August this fiscal year to Rs 12.98 lakh crore, way above the targeted annual increase of 1.5%. Overall expenditure increased 20.3% to Rs 16.72 lakh crore, higher than the annual budgeted rise of 7.5%.
Senior finance ministry officials have already asserted that the FY24 fiscal deficit target of 5.9% of gross domestic product (or Rs 17.87 lakh crore) will be strictly adhered to even though the spending under a few schemes could vary from the budgetary outlays.
Meanwhile, net tax revenues for the Centre rose 14.8% until August this fiscal to Rs 8.04 lakh crore, reversing a drop until July. The net tax revenue improved in August, thanks to lower devolution to states after the front-loading of such transfers earlier this fiscal year.
Non-tax revenues surged 79% to almost Rs 2.1 lakh crore, driven by handsome dividends by the Reserve Bank of India.
Total receipts dropped to Rs 10.3 lakh crore between April and August, down 21.3% from a year before and compared with the targeted annual increase of 10.6%.
ICRA chief economist Aditi Nayar said: “A year-on-year dip in the amount of tax devolution to the states in August 2023 helped to narrow the wedge in the fiscal deficit in April-August FY24 relative to the year-ago levels, and also contained the monthly increment in the fiscal deficit to a low Rs 372 billion.”
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