Fiscal deficit at 3% of full-year Budget estimates at May-end 2024: CGA data

For the current financial year (2024-25), the government estimates the fiscal deficit at 5.1 percent of the GDP, or Rs 16,85,494 crore
Fiscal deficit at 3% of full year Budget estimates at May-end 2024: CGA data
Fiscal deficit at 3% of full year Budget estimates at May-end 2024: CGA data

New Delhi: The Central government's fiscal deficit was only at 3 percent of the annual estimates at May-end 2024-25, the first two months of the financial year during which model code of conduct was in place due to Lok Sabha elections.

The fiscal deficit or the gap between the government's expenditure and revenue was 11.8 percent of Budget Estimates (BE) of 2023-24 in the first two months of the previous financial year.

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According to data released by the Controller General of Accounts (CGA), fiscal deficit during April-May 2024 was Rs 50,615 crore or 3 percent of the BE 2024-25. In the corresponding period of the last fiscal it was 11.8 percent of that year's BE.

Net tax revenue was Rs 3.19 lakh crore or 12.3 percent of BE 2024-25. In the corresponding period it was 11.9 percent of BE 2023-24.

Total expenditure at May-end 2024 was Rs 6.23 lakh crore or 13.1 percent of this fiscal BE. In the year-ago period it was 13.9 percent of BE.

Fiscal deficit at 3% of full year Budget estimates at May-end 2024: CGA data
Centre's fiscal deficit at 55% full-year target at Dec-end 2023: CGA

Generally, the government refrains from making expenditure on new projects when the election commission puts in place model of conduct.

The central government's fiscal deficit during 2023-24 at 5.6 percent of the GDP was better than previous estimates of 5.8 percent on account of higher revenue realisation and lower expenditure.

As per the Fiscal Responsibility & Budget Management (FRBM) Act, the government plans to achieve a fiscal deficit of 4.5 percent in 2025-26.

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