India’s fiscal deficit in first seven months at 46.5% of FY2025 target

India’s fiscal deficit during the April-October period was 46.5% of the full year's target, data released by the Controller General of Accounts (CGA) showed on November 29.

The government’s fiscal deficit stood at ₹7.50 lakh crore during the first seven months of the financial year 2024-25, government data highlighted.

A fiscal deficit is the difference between the total expenditure and revenue of the government. It is an indication of the total borrowing that is needed by the government.

The deficit stood at 45% of the Budget Estimate (BE) in the year-ago period.

In the 2024-25 Union budget, the government had forecasted a fiscal deficit of 4.9% of the GDP for the current fiscal. The deficit stood at 5.6% of the GDP in the corresponding period a year earlier.

The government aims to contain the fiscal deficit within the ₹16.13 lakh crore limit during FY25.

Total expenditure

The central government's total expenditure in the seven months through October stood at ₹24.7 lakh crore or 51.3% of the budget estimate. Expenditure was 53.2% of the budget estimate in the year-ago period.

Of the total expenditure, ₹20 lakh crore was in the revenue account and ₹4.66 lakh crore in the capital account.

Net tax revenue

As per the Union government’s revenue-expenditure data for the first seven months of the current fiscal, India’s net tax revenue stood at 50.5% of the budget estimate. In absolute terms, it was at ₹13 lakh crore.

In the seven months ended October 2023, the net tax revenue collection stood at 55.9% of 2023.