The Centre contained its fiscal deficit at the revised estimate (RE) level of 3.4% of the gross domestic product (GDP), but only after a massive `1.46 lakh crore spending cut including capex, as revenues fell short of target.
As against the FY19 revised estimate (RE) of `21.41 lakh crore, revenue expenditure was slashed by a whopping `1.33 lakh crore, including a `69,395 crore cut in food subsidies. Capex fell short by `12,925 crore from the FY19RE of `3.16 lakh crore.
Net tax revenues stood at `13.17 lakh crore or 88.7% of the FY19RE of `14.84 lakh crore. However, non-tax revenue including non-debt capital receipts met the target.
In absolute terms, the FY19 fiscal deficit of the Centre was around `6.45 lakh crore or 101.7% of the revised estimate of `6.34 lakh crore. However, the deficit as a ratio of GDP came in at 3.39% of GDP as against the FY19RE of 3.4%.
The Centre’s total expenditure was around `23.11 lakh crore in FY19 or 94.1% of the RE. According to the Comptroller General of Accounts, the Centre’s major subsidies were at `1,97,066 crore in the whole of FY19 as against RE of `2.66 lakh crore.
In April, the first month of FY20, the fiscal deficit stood at 1.57 lakh crore, or 22.3% of the budgeted target, the CAG data showed.
Net tax receipts in April were `71,637 crore, while total expenditure was `2.55 lakh crore. The government has set a fiscal deficit target of 3.4% for FY20, the same as FY19.
