The Centre's fiscal deficit at the end of the eighth month of the financial year 2024-25 reached 52.5 per cent of the full-year target, government data revealed on Tuesday.
In absolute terms, the fiscal deficit – the gap between the government's expenditure and revenue – was approximately ₹8.47 lakh crore during the April-November period, according to data released by the Controller General of Accounts (CGA).
In the Union Budget, the government projected reducing the fiscal deficit to 4.9 per cent of gross domestic product (GDP) for the current financial year 2024-25. The deficit stood at 5.6 per cent of GDP in 2023-24.
In absolute terms, the government aims to cap the fiscal deficit at ₹16,13,312 crore during the current fiscal year.
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Revenue-expenditure data for the first eight months of 2024-25 showed that net tax revenue amounted to ₹14.43 lakh crore.
The central government's total expenditure during the eight months to November was ₹27.47 lakh crore, or 56.9 per cent of the budget estimate.
Of this total expenditure, ₹22.27 lakh crore was on the revenue account and ₹5.13 lakh crore on the capital account.
Out of the total revenue expenditure, ₹6,58,494 crore was allocated for interest payments and ₹2,79,211 crore for major subsidies.
A fiscal deficit reflects the difference between the government's total expenditure and revenue. It indicates the total borrowing requirement of the government.
Icra Chief Economist Aditi Nayar stated that the expected shortfall in achieving the capital expenditure target is likely to offset any deficits in disinvestment and tax revenues, as well as the impact of the recent supplementary demand for grants.
Consequently, Icra anticipates the fiscal deficit to slightly trail the 2024-25 estimate of ₹16.1 lakh crore or 4.9 per cent of GDP.
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