India's Fiscal Deficit Swells By 39.3% Of Annual Target, Stands At 7.02 Lakh Crore For April-September

According to government figures released on 31 October, India's budget deficit for the first half of current fiscal year through September was 7.02 lakh crore rupees, or 39.3 per cent of annual expectations according to data released by the Controller General of Accounts (CGA).

The fiscal deficit increased from the 37.3 per cent reported in the same period last year.

Between April and September, total expenditures came to Rs 21.19 lakh crore rupees, while total receipts came to Rs 14.17 lakh crore rupees. They represented 52.2 per cent and 47.1 per cent of the budgetary goal for this fiscal year.

Rs 13.97 lakh crore rupees were received in revenue, of which Rs 11.60 lakh crore were taxed and Rs 2.37 lakh crore were non-tax.

Revenues from taxes and non-tax sources made up 49.8 per cent and 78.5 per cent of the estimated budget.

Non-tax revenue increased from 58.4 per cent of budget prediction during the same period last year, despite tax revenue being less than 52.3 per cent of budget estimate in the most recent fiscal year.

As the Reserve Bank of India approved the transfer of Rs 87,416 crore as surplus to the national government, non-tax revenue increased.

Data revealed that the revenue shortfall for the fiscal year was Rs 23.14 lakh crore rupees, or 26.6 per cent of the budget projection. The difference in revenue decreased from 31.4 per cent to this point last year.

Finance Minister Nirmala Sitharaman stated that India seeks to reduce the fiscal gap from 6.4 per cent of gross domestic product to 5.9 per cent of gross domestic product in current fiscal year.

The larger fiscal deficit coincides with growing conjecture that the government led by PM Narendra Modi, which hopes to win re-election in the Lok Sabha elections and win a third term, will soon need to implement a number of fiscal measures, chiefly to control the skyrocketing rate of inflation.

In terms of spending, New Delhi allocated over Rs 2.06 lakh crore rupees towards significant subsidies including fuel, fertilisers, and food.

This amounted to 55 per cent of the annual goal, which is less than the 63 per cent of anticipated spending from the same time last year.