Blitz Bureau
NEW DELHI: India’s fiscal deficit for the April-September period stood at Rs 4.75 lakh crore, or about 29.4 per cent of the estimate, for the current fiscal (FY25), Government data showed on October 30.
According to the data, net tax receipts for the first six months of the current financial year were Rs 12.65 lakh crore, or 49 per cent of the annual target, compared with Rs 11.6 lakh crore for the same period last year.
The gap between expenditure and revenue during the first six months of the current fiscal stood at Rs 4.75 lakh crore of the total limit set at Rs 16.85 lakh crore for the ongoing fiscal, according to provisional data released on Wednesday by the Controller General of Accounts (CGA).
The Government had set a fiscal deficit target of 4.9 per cent of GDP for the financial year ending March 2025, as it aims to continue on its fiscal consolidation path.
According to Aditi Nayar, Chief Economist and Head at ICRA, the fiscal deficit declined to Rs 4.7 lakh crore or 29 per cent of the FY2025 BE in H1 FY2025, from Rs 7 lakh crore in April-September FY2024, aided by the RBI’s dividend payment in the early part of the fiscal as well as the continuing YoY contraction in the capital expenditure.
“In H1 FY2025, the net tax revenues rose by 9 per cent YoY, non-tax revenues expanded by 51 per cent boosted by the RBI dividend, and revenue expenditure grew by a modest 4 per cent, while capex contracted by an unpleasant 15 per cent,” she noted.
