Lagatar24 Desk
New Delhi: India’s fiscal deficit expanded to 27% of its budgeted target by the end of August 2024, standing at ₹4.35 lakh crore of the total fiscal limit set at ₹16.85 lakh crore for the financial year ending March 2025. This data was revealed in provisional figures released on Friday by the Controller General of Accounts.
Fiscal Deficit and Spending Snapshot
The government has set a fiscal deficit target of 4.9% of GDP for FY25, aiming to continue its fiscal consolidation efforts after improving last year’s deficit to 5.6% of GDP. As of the first five months of FY25, total government expenditure amounted to ₹16.52 lakh crore, which is 34.3% of the annual target.
Of this, ₹4 lakh crore was allocated to interest payments, indicating the significant share of debt servicing in government spending.
Revenue Receipts and Deficit
During the April-August period, revenue receipts stood at ₹10.16 lakh crore, or 32.5% of the fiscal year’s target. Despite the robust revenue collection, the revenue deficit reached ₹1.43 lakh crore, amounting to 24.7% of the annual target.
Key Fiscal Indicators
The government remains focused on managing the gap between expenditure and revenue as it looks to stabilize the economy and ensure sustainable growth. The fiscal deficit data signals the importance of continued efforts toward balancing spending with income to stay on the fiscal consolidation path.
