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Centre’s Fiscal Deficit Touches 59 Pc Of Full-Year Target In Nov-End

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NEW DELHI, Dec 30 (PTI): The government’s fiscal deficit in end-November touched 59 per cent of the full year Budget Estimate on increased capital expenditure and slow growth in non-tax revenue, according to Finance Ministry data released on Friday.

 

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In actual terms, the fiscal deficit, which is the difference between expenditure and revenue, was Rs 9.78 lakh crore during the April-November period of 2022-23. In the corresponding period last year, the deficit was 46.2 per cent of the Budget Estimates of 2021-22.

 

The government has budgeted a fiscal deficit to be Rs 16.61 lakh crore or 6.4 per cent of the GDP in the current year ending March 2023. The deficit is funded by market borrowings.

As per the Controller General of Accounts (CGA) data, the net tax revenue at Rs 12.24 lakh crore was 63.3 per cent of BE 2022-23. During the corresponding period of 2021-22, the net tax revenue was 73.5 per cent of that year’s BE.

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Non-tax revenue was at Rs 1.98 lakh crore or 73.5 per cent of BE. In the last fiscal, the collection was 91.8 per cent of BE.

The central government’s total expenditure during April-November works out to be 61.9 per cent of BE 2022-23, higher than 59.6 per cent of BE in the year-ago period.

Capital expenditure was at Rs 4.47 lakh crore or 59.6 per cent of BE between April-November. In the last fiscal, capex was 49.4 per cent of BE.

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Commenting on the data, Aditi Nayar, Chief Economist, ICRA said in April-November FY2023, the fiscal deficit widened considerably to Rs 9.8 lakh crore,  with net tax revenues reporting a moderate growth of 8 per cent, amidst an 11 per cent contraction in non-tax revenues, 11 per cent rise in revenue expenditure, and high 63 per cent expansion in capex

 

ICRA expects the GoI’s gross tax revenues in FY2023 to exceed the BE by a considerable Rs 3.1 lakh crore and the total expenditure to exceed the BE by Rs 2.3 lakh crore.

“We expect the total receipts of the GoI in FY2023 to exceed the BE by an aggregate of Rs 1.5 lakh crore. Based on this, we estimate the extent of overshoot in the fiscal deficit at around Rs 0.8 lakh crore for FY2023. As a proportion of GDP, the fiscal deficit in FY2023 is unlikely to exceed the FY2023 BE of 6.4 per cent,” Nayar said.

 

As per the CGA data, the central government’s total receipts, including non-tax revenue, stood at Rs 14.64 lakh crore or 64 per cent of the current year’s BE. In the year-ago period, the total receipts had touched 69.8 per cent of BE 2021-22.

 

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The Hills Times
The Hills Timeshttps://www.thehillstimes.in/
The Hills Times, a largely circulated English daily published from Diphu and printed in Guwahati, having vast readership in hills districts of Assam, and neighbouring Nagaland, Meghalaya, Arunachal Pradesh and Manipur.
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