India’s fiscal deficit for the first nine months of this fiscal year through December stood at 9.82 lakh crore rupees, or 55% of annual estimates, government data showed today.
The fiscal deficit narrowed from 59.8% reported in the comparable year-earlier period.
Total receipts stood at 20.72 lakh crore rupees, while overall expenditure in April to December was at 30.54 lakh crore rupees. They were 76.3% and 67.8% of this fiscal year’s budget target.
Total receipts in year-earlier period was at 79.9% of estimate, while expenditure narrowed from 71.4% a year earlier.
Revenue receipts stood at 20.42 lakh crore rupees, of which tax revenue was 17.30 lakh crore rupees and non-tax revenue was 3.12 lakh crore rupees.
Tax and non-tax revenues were 74.2% and 103.5% of the budgeted estimate. While tax revenue was narrower than 80.4% of budget estimate in the last fiscal year, non-tax revenue swelled from 79.5% of budget forecast in the same period last year.
Revenue deficit was at 3.38 lakh crore rupees or 38.9% of the fiscal year’s budget target, data showed. Revenue deficit narrowed from 56.3% in year-earlier period.
While announcing the federal budget for this fiscal year, Finance Minister Nirmala Sitharaman said India aims to narrow the fiscal gap to 5.9% of gross domestic product from 6.4% in the last financial year.
The narrower fiscal deficit comes just a day ahead of the interim budget for fiscal year 2025, where the government is expected to adhere to its fiscal course-correction strategy. There are indications that populist spending or incentives may be avoided in preparation for the forthcoming general election, set for the summer.
There are, however, speculations earlier that the Narendra Modi-led government, which is seeking to return to power for the third term after Lok Sabha elections next year, will soon have to unleash various fiscal measures targeted particularly for the lower income group and steps to rein in galloping inflation rate.
