The Centre's fiscal deficit jumped to 82.7 percent of the FY22 target in April 2021-February 2022, data released on March 31 by the Controller General of Accounts showed.
The fiscal deficit had amounted to 76.0 percent of the full-year target for the corresponding period of FY21.
While the latest numbers on the government's finances continue to show the Centre is on track to meet its revised fiscal deficit target of 6.9 percent of GDP for FY22, February saw a sharp rise in the deficit.
The fiscal deficit had amounted to 58.9 percent of the full-year target in April 2021-January 2022.
In February, the Centre recorded a fiscal deficit of Rs 3.79 lakh crore, more than double of what it posted in the corresponding period last year.
The huge increase in the fiscal deficit in February was because of transfers to states. In February, the Centre transferred Rs 2.42 lakh crore to states as against Rs 95,082 crore in January and Rs 35,281 crore in February 2021.
As a result, even though the Centre's gross tax revenue in February was up 17.6 percent year-on-year at Rs 1.77 lakh crore, net tax revenue was a negative Rs 66,550 crore. Total receipts, too, saw a reduction of Rs 44,236 crore in February, which helped push up the fiscal deficit.
On the expenditure side, total spending in February was up 11.0 percent on year at Rs 3.34 lakh crore, with capital expenditure at Rs 43,495 crore.
| APR 2021-FEB 2022 (in Rs lakh crore) | YoY CHANGE (IN %) | % OF FY22 TARGET | |
| Total receipts | 18.27 | 29.3% | 83.9% |
| Net tax revenue | 14.81 | 21.8% | 83.9% |
| Non-tax revenue | 3.10 | 101.1% | 98.8% |
| Divestment | 0.14 | -47.4% | 17.3% |
| Total expenditure | 31.44 | 11.5% | 83.4% |
| Capital expenditure | 4.85 | 19.7% | 80.6% |
| Fiscal deficit | 13.17 | -6.3% | 82.7% |
On the income side, total receipts were 29.3 percent higher in the first 11 months of FY22, with non-tax revenue more than twice of what was collected in the same period of FY21.
