India's fiscal deficit stands at ₹4.35 lakh crore from April-August
India's fiscal deficit from April to August 2024 stood at ₹4.35 lakh crore, accounting for 27% of the yearly estimate, according to government data released today. This number shows a notable decrease compared to last year's 34% during the same period. The report also pointed out a dip in capital spending in August compared to July, when it had surged by 110%.
Capital expenditure and tax receipts
In the first five months of this fiscal year, capital spending hit 27.1% of the planned ₹11.11 lakh crore, down from last year's 37.4% in the same period. Net tax receipts for this period stood at ₹8.74 lakh crore or 34% of the annual target, up from last year's ₹8.04 lakh crore for the same period. This uptick in tax collection has been key in keeping the fiscal deficit under control.
Revenue collection and government spending
Revenue collection in the first five months stood at 38.6% of the full-year target, a tad higher than last year's figure of 38.5% during April-August. The total government expenditure during this period was ₹16.52 lakh crore or about 34% of the annual goal, lower than ₹16.72 lakh crore spent in the same period last year. The Indian government has set its fiscal deficit target at 4.9% of GDP for this fiscal year, down from 5.6% in the previous fiscal year.
Market borrowing and RBI dividend
Sticking to its market borrowing target is expected to help the government keep its fiscal deficit in check. Oh, and there's an extra boost from an unexpectedly high dividend from the Reserve Bank of India (RBI). The borrowing calendar for the second half of the year shows that the government is looking to raise ₹6.61 lakh crore, just like it did in the budget. A big chunk of that is likely to come from long-term securities.
