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The Centre’s fiscal deficit at the end of the first five months of the current fiscal touched 27% of the full-year target, government data showed on Monday (September 30, 2024).

In absolute terms, the fiscal deficit – the gap between expenditure and revenue – was at ₹4,35,176 crore as of August-end, according to data released by the Controller General of Accounts (CGA).

The deficit stood at 36% of the Budget Estimates (BE) in the corresponding period of 2023-24.

In the Union Budget, the government projected to bring down the fiscal deficit to 4.9% of the gross domestic product (GDP) in the current 2024-25 financial year. The deficit was 5.6% of the GDP in 2023-24.

In absolute terms, the government aims to contain the fiscal deficit at ₹16,13,312 crore during the current fiscal.

Unveiling the revenue-expenditure data of the Union government for the first five months of 2024-25, CGA said the net tax revenue was ₹8.7 lakh crore or 33.8% of the BE for the current fiscal.

The net tax revenue collection was 34.5% at July-end 2023.

The central government’s total expenditure in the four months through August stood at ₹16.5 lakh crore or 34.3% of BE. The expenditure was 37.1% of the BE in the year-ago period.

Of the total expenditure, ₹13,51,367 crore was in the revenue account and ₹3,00,987 crore was in the capital account.

Out of the total revenue expenditure, ₹4,00,160 crore was towards interest payments.

Fiscal deficit is the difference between the total expenditure and revenue of the government. It is an indication of the total borrowing that is needed by the government.