BUSINESS

According to official data, India’s fiscal deficit decreased to 63.6% of its whole FY target by January 2024, down from 67.8% a year earlier

The most recent official statistics, which was issued on February 29, shows that India’s budget deficit for the April–January 2024 period was Rs 11.03 lakh crore, or 63.6 percent of the whole revised goal for FY24. Nonetheless, the deficit is less than the Rs 11.9 lakh crore, or 67.8% of the whole year goal, reported in FY2023 (April–January).

The most recent data available from the Controller General of Accounts (CGA) shows that total revenues from April to January of FY24 were Rs 22.52 lakh crore, while total expenditures came to Rs 33.55 lakh crore. They represented, respectively, 81.7% and 74.7% of the amended budget objective for this fiscal year.

Although net tax revenues increased by 11%, non-tax revenues increased by 46% thanks to the RBI dividend, a meager 1.4% increase in revenue expenditure, and a robust 26.5% YoY increase in capital expenditures.

“The Government of India’s fiscal deficit stood at Rs 11 trillion, or 64 per cent of the FY2024 RE in April-January FY2024, lower than the Rs 11.9 trillion recorded in April-January FY2023,” said Aditi Nayar, chief economist and head of research and outreach at ICRA. Although net tax revenues increased by 11%, non-tax revenues increased by 46% thanks to the RBI dividend, a modest 1.4% increase in revenue expenditure, and a robust 26.5% YoY increase in capital expenditures.

ICRA does not anticipate that the revised fiscal deficit goal of Rs 17.3 lakh crore for FY2024 would be exceeded, she added, notwithstanding the possibility of some slippage in the disinvestment objective and capex falling short of the FY2024 RE.

Q4 FY2024 began on a negative note as the GoI’s spending fell to Rs 47,600 crore in January 2024 from approximately Rs 80,000 crore in January 2023. ICRA anticipates the government’s capex to undershoot the FY2024 RE by at least Rs 0.5 lakh crore, according to Nayar, with Rs 2.3 lakh crore still needing to be spent in February and March 2024 to reach the full-year target for capex this fiscal. This is significantly more than the Rs 1.7 lakh crore recorded in the same months of FY2023.

Related Articles

Back to top button