First half deficit touches 37.3% of full year estimate as govt. Spends more on fertilizer, food and fuel subsidies
First half deficit touches 37.3% of full year estimate as govt. Spends more on fertilizer, food and fuel subsidies
India’s fiscal deficit widened to ₹6.2 lakh crore in the first half of the fiscal year through September, from ₹5.27 lakh crore a year ago, though rising tax collections helped offset a higher subsidy bill.
The fiscal deficit for the April-September period touched 37.3% of the annual estimate, official data showed on Monday, as the government spent more on fertilizer, food and fuel subsidies.
Net tax collection during April-September rose to ₹10.12 lakh crore, an increase of nearly 10% from a year ago, despite growing fears of shortfall in receipts from stake sale in state-run firms this year. got help.
The spending bill of the central government is expected to increase by around Rs 2 lakh crore this fiscal, following higher allocation for subsidies, widening the fiscal deficit, according to estimates by several economists.
However, a pick-up in urban demand on the back of an increase in Goods and Services Tax receipts and higher inflation could help meet the budgeted fiscal deficit target.
The data shows that the total expenditure for the first six months of the current fiscal was ₹18.24 lakh crore, as against ₹16.26 lakh crore a year ago.
In February, presenting the annual budget, Finance Minister Nirmala Sitharaman set the fiscal deficit target at 6.4% of GDP for 2022/23, as against 6.7% in the previous financial year.
The government aims to spend around ₹40 lakh crore in the current financial year, which is almost 4% higher than last year, but lower in real terms this year due to inflation of around 7%.