India's Fiscal Deficit: Target Missed?

Sindujaa D N
India's fiscal deficit for the first 11 months of the financial year 2023-24, spanning from april to february, has reached Rs 15.01 lakh crore, representing 86.5%of the annual target. In comparison, during the same period in the previous financial year 2022-23, the fiscal deficit stood at Rs 14.53 lakh crore.

Released by the Controller General of Accounts (CGA) on march 28, 2024, the data highlights that the government of India's total expenditure from april to february in the current financial year amounted to Rs 37.47 lakh crore, compared to Rs 34.94 lakh crore in the corresponding period of the previous year. capital expenditure totalled Rs 8.05 lakh crore during this period, constituting 84.8% of the targeted Rs 10 lakh crore for 2023-24. Notably, the government had spent Rs 5.90 lakh crore on capital expenditure earlier in the financial year.


On the revenue front, the government collected Rs 18.5 lakh crore through taxes from april to february, representing 79.6% of the total target. In the previous financial year, the total tax collection during this period was Rs 17.32 lakh crore. The government's total receipts from april to february amounted to Rs 22.5 lakh crore, equivalent to 81.5% of the total target. Non-tax revenue stood at Rs 3.6 lakh crore during this period, accounting for 95.9 % of the total target.


With a difference of Rs 7.32 lakh crore between receipts and total expenditure, representing 87% of the annual target, fiscal management remains a key focus area. Finance minister Nirmala Sitharaman, while presenting the interim budget on february 1, 2024, outlined the government's objective of maintaining the fiscal deficit at 5.8% of the GDP in 2023-24, with further plans to reduce it to 5.1% in the next financial year, 2024-25.

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