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Centre's Apr-Oct Fiscal Deficit Rises To Rs 7.58 Lakh Cr Of FY23 Target

In the April to September period, the fiscal deficit had widened to touch Rs 6.20 lakh crore accounting for 37.3 per cent of annual estimates

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India's fiscal deficit widened to Rs 7.58 lakh crore from April to October, accounting for 45.6 per cent of annual estimates, official data revealed on Wednesday. For fiscal 2022-23, the fiscal deficit of the government is estimated to be Rs 16.61 lakh crore or 6.4 per cent of the GDP.

Net tax receipts surged to Rs 11.71 lakh crore while the total expenditure came in at Rs 21.44 lakh crore, the government data stated. 

The fiscal deficit for April to October last year accounted for 36.3 per cent of the FY22 aim. In the April to September period, the fiscal deficit had widened to touch Rs 6.20 lakh crore accounting for 37.3 per cent of annual estimates.

Aditi Nayar, Chief Economist, ICRA said, “In April-October FY2023, while the government's net tax revenues reported a healthy growth of 11 per cent, the 14 per cent contraction in non-tax revenues, combined with the 10 per cent rise in revenue expenditure, and the robust 62 per cent  expansion in Capex, widened the fiscal deficit to Rs 7.6 trillion in April-Oct FY2023 from Rs 5.5 trillion in the first seven months of FY2022." 

In FY21, The fiscal deficit had widened to 9.3 per cent as the pandemic hit revenues and increased relief spending. Due to the pandemic, the surge in savings in the economy helped finance the widened deficit. But now the economy is returning to normal.

In February this year, while presenting the annual budget, Union Finance Minister Nirmala Sitharaman set the fiscal deficit target at 6.4 per cent of GDP for FY23 starting April, compared to 6.7 per cent in the previous financial year.

Nayar added, “We expect the gross tax revenues in FY2023 to exceed the BE by a considerable Rs 3.1 trillion. Following the double-tranche of taxes devolved to the state governments in November 2022, we estimate that Rs 3.8 trillion remains to be disbursed to the states in the last four months, based on our estimate of the FY2023 gross tax revenues."


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