Centre’s fiscal deficit narrowed to 8.1 percent of the full year estimate in the first quarter of the year, compared with 25.3 percent during similar period in the previous year, government data released on July 31 showed.
The fiscal deficit stood at Rs 1.36 lakh crore, compared with Rs 50,615 crore in the first two months of the year.
The government data considers interim Budget numbers for estimates. Based on the Budget numbers released on July 23 fiscal deficit was 8.4 percent of target of Rs 16.13 lakh crore.
Higher-than-expected RBI dividend of Rs 2.11 lakh crore has helped keep fiscal deficit contained, along with rise in revenue receipts and subdued capital spending.
Revenue receipts were higher at Rs 8.3 lakh crore or 26.5 percent of full year target based on new Budget numbers compared with 22.4 percent in Q1FY24.
Tax revenue was 21 percent of the full year estimate compared with 18.6 percent in the previous year.
Capex utilisation was lower at 16.3 percent of Budget estimates compared with 27.8 percent in Q1FY25 in the previous year.
Loans disbursed at Rs 30,009 crore were just 17.5 percent of target compared with 27.2 percent in the first quarter of previous fiscal.
Overall, the government has spent 20 percent of its total expenditure of Rs 48.2 lakh crore Budgeted for the current fiscal.
" Impact of FY25 budget proposals will start reflecting on revenue and expenditure after passage of finance bill and would start reflecting from August 2024 fiscal numbers. Ind-Ra expects, government to achieve its FY25 deficit target," said Paras Jasrai, senior analyst, India Ratings and Research.
The government in the Budget announced on July 23 further reduced the fiscal deficit target to 4.9 percent of the GDP compared with 5.1 percent target set in the interim Budget.
The finance minister in her Budget speech had noted that the government was steadfast in reducing the fiscal deficit further to 4.5 percent or below by FY26.
The revenue receipt target was also raised to Rs 31.3 lakh crore in FY25 compared with Rs 30 lakh crore in the interim budget.
Capex spending was kept unchanged at Rs 11.11 lakh crore.
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