The Centre's fiscal deficit touched 56.7% of the annual target at the end of December 2024, according to data released by the Controller General of Accounts (CGA).
In actual terms, the fiscal deficit — the gap between expenditure and revenue — was Rs 9,14,089 crore during the April-December 2024-25 period. The deficit was 55% of Budget Estimates (BE) of 2023-24 in the year-ago period.
The CGA data showed that the central government's tax revenue (net) was Rs 18.43 lakh crore, or 71.3% of the BE of 2024-25, compared to 74.2% during the corresponding period of the last financial year.
The total expenditure was Rs 32.32 lakh crore, or 67% of the BE, according to the revenue-expenditure data of the Union government. In the year-ago period, it was 67.8% of the BE.
In the Union Budget, the government projected bringing down the fiscal deficit to 4.9% of gross domestic product (GDP) in the current 2024-25 financial year. The deficit was 5.6% of 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 year.
A fiscal deficit is the difference between the total expenditure and revenue of the government. It is an indication of the total borrowing needed by the government.
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