India's April-November fiscal deficit narrows to 50.7% of FY24 target
India's fiscal deficit for the first eight months of the current financial year, from April to November, reached Rs. 9.07 lakh crore. As per data released by the Controller General of Accounts, this makes up 50.7% of the full-year target of Rs. 17.87 lakh crore. This shows an improvement compared to the 58.9% deficit during the same timeframe last year.
Total receipts and expenditure for April-November period
Throughout April to November, total receipts amounted to Rs. 17.46 lakh crore, while overall expenses hit Rs. 26.52 lakh crore, representing 64.3% and 58.9% of this year's budget target, respectively. In contrast, the previous year's receipts were at 64.1% of estimates, and expenditure was down from 61.9%. The government's goal is to lower the fiscal deficit to under 4.5% of GDP by 2025-26.
Impact on upcoming interim budget and general elections
This reduction in fiscal deficit comes before the interim budget for the 2025 fiscal year, where the government is anticipated to stick to its fiscal course-correction strategy. This could mean avoiding populist spending or incentives as they prepare for the upcoming general elections in the summer. However, there have been speculations that Prime Minister Narendra Modi's government may need to implement various fiscal measures to control inflation rates before next year's elections.
