Govt's fiscal deficit rises to 39.3% of annual target in first half of FY24

In the Union Budget, the government projected to bring down the fiscal deficit to 5.9% of the GDP in the current 2023-24 financial year

Central government's fiscal deficit touched 39.3% of the full year target in the first half of the current financial year, slightly higher than 37.3% recorded in the year-ago period.

In actual terms, the fiscal deficit or the gap between expenditure and revenue worked out at ₹7.02 lakh crore at the end of September 2023, showed data released by the Controller General of Accounts (CGA).

In the Union Budget, the government projected to bring down the fiscal deficit to 5.9% of the gross domestic product (GDP) in the current 2023-24 financial year.

The fiscal deficit was 6.4% of the GDP in 2022-23 against the earlier estimate of 6.71%.

The tax revenue was at ₹11.60 lakh crore or 49.8% of the annual target. During April-September 2022-23, the net tax collection was 52.3% of that year's annual Budget Estimate (BE).

Centre's total expenditure was ₹21.19 lakh crore or 47.1% of BE of 2023-24, marginally higher than 46.2% of BE 2022-23.