In absolute terms, the fiscal deficit – the difference between revenue and expenditure that is met with borrowings – stood at ₹3.52 lakh crore at the end of June, according to the data released. Controller General of Accounts (CGA).
The fiscal deficit at the end of June 2021 stood at 18.2% of the revised FY22 estimate.
Tax revenue at the end of Q1 stood at ₹5.06 lakh crore, an increase of 22% over the corresponding quarter last year. Non-tax revenue decreased by 51.2% in the same period, 69.4% due to lower surplus transferred by reserve Bank of India For the Centre, pulling down total revenue receipts that grew by 5.2%.
The total expenditure stood at ₹ 9.48 lakh crore, which is 24% of the target for the full year. This includes capital expenditure of Rs 1.75 lakh crore, which was 57% higher than the previous year. Revenue expenditure was up 9% over the prior year.
Rajan SinhaChief Economist of CareEdge (formerly.)
), said the Center does not expect to settle on capital expenditure, or capex, in the coming quarters, despite the reduction in revenue due to additional subsidies and cuts in fuel excise duty. However, subsidy bills may also increase, she said.
“We will see an increase in the food subsidy bill in subsequent quarters,” Sinha said. He said the low outlay on subsidy is mainly due to the central government deferring its food subsidy bill payments.
India’s fiscal deficit is estimated at 6.4% of GDP for FY13 as against 6.7% in the previous year.
Experts expect the government to meet the target on the back of strong tax revenues. “We do not expect the fiscal deficit to exceed 6.4% of GDP, based on the assumption of nominal GDP growth of 15%,” said Aditi Nair, chief economist at the rating agency.
Told.
India Rating The higher level of inflation in the economy would boost the nominal GDP, which in turn would help the government not only meet but exceed its tax collection targets for FY13, it said.
“…The unexpected tax, coupled with spurt in taxes on crude oil and other export duties, will give the central government enough headroom/fiscal space to spend more on subsidies and cover the loss of revenue due to cut in excise duty. Petrol. / duty on diesel,” India Ratings said. It expects the fiscal deficit for FY13 to be 6.2%-6.4% of GDP.