Fiscal Deficit Touches 31.1% Of Annual Target At End-August

The government's fiscal deficit stood at Rs 4.68 lakh crore or 31.1 percent of the Budget estimates at the end of August, as per data released by the Controller General of Accounts (CGA) on Thursday. The deficit figure in the current fiscal appears much better than the previous financial year when it had soared to 109.3 percent of the estimates, mainly on account of a jump in expenditure to deal with the COVID-19 pandemic. 

In absolute terms, the fiscal deficit or gap between expenditure and revenue was Rs 4,68,009 crore at end of August, the CGA said.

For the current financial year, the government expects the deficit at 6.8 percent of GDP or Rs 15,06,812 crore. As per the data, the central government's total receipts stood at Rs 8.08 lakh crore or 40.9 percent of the corresponding Budget Estimate (BE) 2021-22 up to August, 2021. The total receipts were 16.8 percent of the BE of 2020-21 during the corresponding period of the last financial year.

Of the total receipts, the tax revenue was Rs 6.44 lakh crore or 41.7 percent of BE. The tax revenue was only 17.4 percent of BE of 2020-21 in the year-ago period. The CGA said the Centre's total expenditure was Rs 12.76 lakh crore or 36.7 percent of BE up to August 2021.

The fiscal deficit for 2020-21 was 9.3 percent of the Gross Domestic Product (GDP), better than 9.5 percent projected in the revised estimates in the Budget in February.

(PTI)