India's fiscal deficit during April - July at 20.5% of FY23 target

1 Sep 2022 , 09:22 AM

According to official figures issued on Wednesday, the central government’s budget deficit reached 20.5% of the annual target in the four months leading up to July 2022 as opposed to 21,3% a year earlier, demonstrating progress in public finances.

The fiscal deficit, or discrepancy between revenues and expenditure of the government, was really Rs3.41 trillion from April through July of the current fiscal year.

 The amount of market borrowings by the government is reflected in the fiscal deficit. According to information provided by the Controller General of Accounts (CGA), the government received 7.85 trillion rupees (or 34.4% of the BE for 2022—23) in total revenues, including taxes. It was almost identical at 34.6% during the same time last year.

The tax take was Rs6.66 trillion, or 34.4% of the BE for this year. The government was able to collect 34.2% of its yearly estimate from April through July of last year as well. The report also showed that the federal government spent Rs11.26 trillion, or 28.6% of the BE 2022—23, which is about the same as the same time last year.

According to the CGA’s monthly account of the Union government up to July 2022, capital expenditures were 27.8% of the full-year budget objective compared to 23.24% in the same period the previous year. The government’s projected budget deficit for 2022—23 is Rs 16.61 trillion, or 6.4% of GDP.

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