Fiscal deficit for Apr-June at 3.5 lakh cr; 21% of FY23 target
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The central government's fiscal deficit for April-June 2022 stood at ₹3,51,871 crore, which is about 21.2% of its full financial year target, the data released by the Controller General of Accounts shows.
During the same period last year, India's fiscal deficit was ₹2,74,245 crore, about 18.2% of the FY22 target. During the previous Jan-March period, the Centre's fiscal deficit was ₹2.71 lakh crore.
The Centre's full-year target for fiscal deficit stands at ₹16,61,196 crore.
The revenue-expenditure data released by the Controller General of Accounts (CGA) shows that for June 2022 alone, the fiscal deficit was ₹1,47,950 crore, which was hit because the Centre announced an excise duty cut on petrol and diesel on May 21.
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To control the rising inflation in the economy, the Central government announced a reduction in the central excise duty by cutting petrol prices by ₹8 per litre and diesel prices by ₹6 per litre in May. It also announced a ₹200 subsidy on LPG gas cylinders. The excise cut on fuel and subsidy outgo on LPG is expected to cost over ₹1 lakh crore to the Centre.
To offset some impact, the Centre on July 1 imposed a special additional excise duty of ₹6 per litre on exports of petrol and ₹13 per litre on exports of diesel. The special additional excise duty of ₹6 per litre was imposed on the exports of aviation turbine fuel, too. On July 20, however, the export tax of ₹6 per litre on petrol was removed, while the windfall tax on diesel and ATF exports was cut by ₹2 a litre.
In total, the government received ₹5,96,040 crore up to June 2022, comprising ₹5,05,898 crore tax revenue (net to Centre), ₹62,160 crore of non-tax revenue and ₹27,982 crore of non-debt capital receipts up to June 2022. The receipts for June are 26.1% of corresponding budget estimates for 2022-23 of the total receipts.
The non-debt capital receipts consist of recovery of loans of ₹3,423 crore and miscellaneous capital receipts of ₹24,559 crore. Around ₹1,42,775 crore has been transferred to states as devolution of share of taxes by the government up to this period, which is ₹25,251 crore higher than the previous year.
The total expenditure incurred by the government is ₹9,47,911 crore, 24.0% of the corresponding BE 2022-23. Of this, ₹7,72,847 crore is in the revenue account and ₹1,75,064 crore is in the capital account. Of the total revenue expenditure, ₹2,28,595 crore is on account of interest payments and ₹67,980 crore is on account of major subsidies.
India's fiscal deficit for the 2021-22 financial year was 6.71% of the GDP, lower than the 6.9% projected in the finance ministry's revised estimates. The revenue deficit at the end of the financial year stood at ₹10,32,947 crore (4.37%) in absolute terms.
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