India’s fiscal deficit for the for the months of April to October widened to Rs 7.58 lakh crore, over 45% of FY23’s target, the central government reported on Wednesday. The fiscal deficit for April-October FY22 clocked in at only 36.3% of the budget.
When FM Sitharaman reported the Finance Budget for FY23, the Finance Minister announced that India will seek to reduce the fiscal gap by 30 bps to 6.4% of the GDP, instead of 6.7% during FY22.
The data showed that the total receipts were Rs 13.86 lakh crore rupees, whereas the total expenditure was Rs. 11.71 lakh crore. The tax revenue component of the revenue receipts was Rs 11.71 lakh crore, while the non-tax revenue was Rs 1.79 lakh crore.
The spending on-year increased by Rs 3.17 lakh crore, from Rs 18.26 lakh crore to Rs 21.43 lakh crore. The capital expenditure increased from Rs 2.53 lakh crore to Rs 4.09 lakh crore on-year. The tax revenue for the April to October period in FY22 was Rs 13.64 lakh crore, increasing by Rs 2.45 lakh crore to Rs 16.09 lakh crore for the first seven months of this fiscal year.
Due to the effects of the pandemic, the fiscal deficit of the country touched 9.3% of the GDP due to relief schemes and a surge in expenditures. People sought to boost their savings, slowing down their investments and spending, which caused the deficit to widen.
The GDP data for Q2 is to be announced later in the day, which will provide an insight into the performance of various sectors and the country’s economy as a whole.