India’s April-November Fiscal Deficit Widens on-year to 58.9% of FY23 Aim

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. 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.

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How Much Is The Fiscal Target:

The government has budgeted 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. 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.

Govt Total Revenues:

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. 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. 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.

Corporate tax, income tax, and GST collections till November 2022 have been better than the budgeted growth and are providing support to tax revenue growth.