New Delhi, Nov 30, : , India’s April-October fiscal deficit has reached 36.3 percent of its FY22 target. According to the Controller General of Accounts (CGA), fiscal deficit (the difference between revenue and spending) for the April-October 2021-22 period was Rs 547,026 crore or 36.3 percent of the budget estimates.
The FY22 deficit was estimated at Rs 15.06 lakh crore.
CGA data also showed that the fiscal deficit in the same months of the previous fiscal was 119.7% of the target for that year.
The total expenditures of the Central government were Rs 1,826,725 crore (52.4 percent of BE), while total receipts were at Rs 1,279 6,99 crore (64.7 percent of BE).
Aditi Nayar, ICRA Chief Economist, stated that the total expenditure to exceed the FY2022 BE was Rs 1.3-1.5 trillion based on the net outgo relating to ‘First Supplementary demand for Grants’, recent increase in food subsistence outgo towards ‘PMGKAY, increase in fertiliser subsidies for the rabi seasons, and the likely increase in the allocation for ‘MGNREGA’ and the new export benefit RoDTEP’.
“If the proceeds from the BPCL disinvestment or LIC IPO are not realised by FY2022, the GoI’s fiscal gap may reach Rs 15.8-16 trillion (6.9-7 percent of GDP), which is more than the BE of Rs.15.1 trillion.”
Sunil Kumar Sinha, India Ratings and Research’s principal economist, stated that the fiscal deficit in the first seven months fell to Rs 201.75 Billion in FY22, or 36.3 percent of the full year.This is the lowest level in the last four years and lowest percentage of full-year fiscal deficit in the last 13 years.This is due to both high revenue receipt growth and low revenue spending growth.
“Capex growth has been strong in FY22.However, when compared to budget target, Capex for the first seven months was 45.71 percent.Revenue receipts have grown due to increased corporate tax and custom collection.India Ratings projects that fiscal deficit in FY22 will be 6.2 percent of GDP, which is lower than the 6.8 percent budgeted.
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