India's April-February fiscal deficit covers 86.5% of FY24 target
India's fiscal deficit from April to February in FY24, has reached Rs. 15.01 lakh crore, marking approximately 86.5% of the annual target, according to recent data. This figure represents a slight increase from the Rs. 14.53 lakh crore deficit recorded during the same period in the previous year. The government, led by Finance Minister Nirmala Sitharaman, has outlined a plan to reduce this deficit as part of its economic strategy.
Government plans to decrease fiscal deficit
The Centre aims to decrease the fiscal deficit to 5.8% of GDP this year and further reduce it to 5.1% in the next financial year. This plan was announced during the Interim Union Budget, where it was also revealed that the government has trimmed its fiscal deficit target for FY24 by 10 basis points.
Increase in government expenditure and capital outlay
From April to February in FY24, the total government expenditure amounted to Rs. 37.47 lakh crore, reaching about 83% of the annual target. This marks an increase from last year's expenditure of Rs. 34.94 lakh crore during the same period. The Indian government's capital expenditure for physical infrastructure development stood at Rs. 8.05 lakh crore between April and February, achieving 84.8% of its FY24 target, a significant rise from the previous year's figure.
Revenue figures show increase in tax and non-tax earnings
Net tax revenues for April-February were recorded at Rs. 18.5 lakh crore, or around 79.6% of the overall target, showing an increase from Rs. 17.32 lakh crore in the same period of FY23. Non-tax revenue was reported at Rs. 3.6 lakh crore, achieving about 95.9% of the overall target. These figures indicate a positive trend in both tax and non-tax revenues for the government during this fiscal year.
