India's April-August fiscal deficit increases to Rs. 6.43 lakh crore
In the first five months of this financial year through August, India's fiscal deficit has grown to Rs. 6.43 lakh crore, which is 36% of the annual target of Rs. 17.87 lakh crore. This is a significant increase compared to the same period in the previous fiscal year when it was 32.6% of the annual target. This suggests that the government is spending more than it's earning, potentially requiring measures to manage the deficit and maintain fiscal stability.
Revenue and expenditure overview
From April to August, total receipts amounted to Rs. 10.29 lakh crore, equivalent to 37.9% of the annual estimates. Among these receipts, tax revenue accounted for Rs. 8.04 lakh crore, representing 34.5% of the annual estimates. The total expenditure increased from Rs. 13.9 lakh crore to Rs. 16.72 lakh crore, reaching 37.1% of the annual estimates for the current fiscal year.
Corporate and income tax collections showed growth
Corporate tax collections showed a year-on-year surge of over 15%, totaling Rs. 2.39 lakh crore for April-August. Tax and non-tax revenues amounted to 34.5% and 69.5% of the budgeted estimate, respectively. Tax revenue was slightly narrower than the 36.2% of the budget estimate in the last fiscal year, while non-tax revenue notably increased from 43.3% of the budget forecast during the same period last year thanks to RBI's transfer of Rs. 87,416 crore as surplus to the central government.
