Govt’s fiscal deficit widens to 58.9% of FY23 target

/2 min read

ADVERTISEMENT

Govt recently told Parliament the fiscal deficit in H1 FY23 remained significantly lower than the moving average of the last five years on the back of tax buoyancy.
Govt’s fiscal deficit widens to 58.9% of FY23 target
The Centre's full-year target for fiscal deficit stands at ₹16,61,196 crore. 

The central government's fiscal deficit widened to ₹9.78 lakh crore in the April-November period, around 58.9% of the Budget Estimates for 2022-2023, data released today by the Controller General of Accounts (CGA) shows. The fiscal deficit recorded till November 2022 is higher than the 46.2% recorded during the same period last year.

The government's total receipts in the year-to-date period stood at ₹14.6 lakh crore, as compared to ₹13.7 lakh crore in the same period last year. The monthly receipts in November saw a decline at ₹79,059 crore as compared to ₹99,294 crore during the same month last year.

Fortune India Latest Edition is Out Now!

Read Now

The government's overall expenditure in the April-November period rose to ₹24.4 lakh crore, around 61.9% of the Budget 2022-23 estimates, as compared to ₹20.7 lakh crore (59.6% of BE) during the same month last year. The monthly expenditure rose to ₹2.9 lakh crore in November 2022 as compared to ₹2.4 lakh crore during year-ago period.

So far this year, the government's fiscal deficit was recorded the highest in September 2022 at ₹3.52 lakh crore, followed by June at ₹2.1 lakh crore and October at ₹1.8 lakh crore.

The government's revenue receipts up to November 2022 stood at ₹14.2 lakh crore -- 64.6% of the budget estimates -- of which ₹12.2 lakh crore was net tax revenue, while ₹1.98 lakh crore was non-tax revenue. The non-debt capital receipts up to November 2022 stood at ₹41,481 crore, 52.3% of the full-year target as 11% in the year-ago period.

The government's revenue deficit up to November 2022 was recorded at ₹5.7 lakh crore, 57.8% of the full-year target of ₹9.9 lakh crore, while the primary deficit stood at 60.1% of the full-year target at ₹4.3 lakh crore.

This month, the finance minister said in Parliament that the fiscal deficit in the first half of the current financial year (April-September) remained significantly lower than the moving average of the last five years on the back of tax buoyancy seen during the period.

This ministry's half-yearly review showed the fiscal deficit in H1 FY23 was about ₹6.20 lakh crore, which was about 37.3% of the budget estimate (BE) 2022-23 and significantly lower than five years’ moving average of 85.8%.

It may be noted that in the first half of the current financial year, the tax revenue (net to centre) at 52.3% of the budgeted amount was significantly higher than the last five years moving average of 41.6% of the budget estimate, the ministry stated. On the expenditure front, the total expenditure comprising revenue expenditure and capital expenditure in H1 of FY 2022-23 at about ₹18.24 lakh crore was 46.2% of the budget estimate, as per the ministry.

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.