Centre’s fiscal deficit crosses a third of full year target in July

New Delhi: The Indian government's fiscal deficit, or the gap between spending and receipts met through borrowings, crossed ₹6 trillion, or a third of the ₹17.9 trillion estimated in the union budget for FY24, data from the Comptroller General of Accounts (CGA) showed on Thursday.

Fiscal deficit stood at 33.9% of the full year target, aided by strong tax and non-tax revenue receipts. Overall revenue receipts in the first four months of this fiscal stood at ₹7.6 trillion or 29% of the full year target.

The Centre's revenue deficit, or gap between revenue receipts and revenue spending, stood at ₹3 trillion up to end of July, accounting for 35% of the full year target.

The central government collected ₹5.8 trillion in tax revenue up to July, accounting for a quarter of the ₹23.3 trillion full year target. While corporate tax collection of ₹1.76 trillion up to July end was a tad lower than the amount collected in the same time a year ago, personal income tax collection of ₹2.57 trillion and central goods and services tax (CGST) collection of ₹2.73 trillion exceeded the amounts collected from these sources in the same period a year ago. Union excise duty collection in the first four months of the current fiscal stood at ₹76,200 crore, below the ₹85,147 crore collected in the same time a year ago.

Among non-tax revenue receipts, a major highlight is the improvement in profits and dividends received by the central government. Up to end of July, receipts by way of dividends and profits exceeded ₹1 trillion, more than the full year budgeted target of ₹91,000 crores. Centre collected ₹5,465 crores from disinvestment till July end against the full year target of ₹51,000 crores, data showed.

The Centre also transferred ₹3 trillion to state governments up to end of July, as devolution of taxes, which is ₹1 trillion more than the amount transferred in the same time a year ago.