Central Government’s Fiscal Deficit Stands at 3%Central Government’s Fiscal Deficit Stands at 3% As of the end of May 2024, the central government’s fiscal deficit had reached 3% of its annual budget estimates for the 2024-25 financial year. This period included the Lok Sabha elections, during which the Model Code of Conduct was in effect. In contrast, during the corresponding period in the previous financial year (2023-24), the fiscal deficit stood at a significantly higher 11.8% of the budget estimates. The fiscal deficit represents the difference between government expenditure and revenue. For the current fiscal year, the government has projected a fiscal deficit of 5.1% of GDP, which translates to approximately Rs 16,85,494 crore. Data from the Controller General of Accounts (CGA) indicates that the fiscal deficit for April-May 2024 amounted to Rs 50,615 crore. This represents 12.3% of the budgeted revenue for the year, higher than the 11.9% achieved in the same period of the previous year. Total government expenditure reached Rs 6.23 lakh crore by the end of May 2024, representing 13.1% of the annual budget. This is comparable to the 13.9% spent during the same period in 2023-24. In 2023-24, the central government successfully reduced its fiscal deficit to 5.6% of GDP, outperforming previous estimates of 5.8%. This improvement was attributed to higher revenues and cost reductions. Under the Fiscal Responsibility and Budget Management (FRBM) Act, the government aims to reduce the fiscal deficit to 4.5% by 2025-2026.
The central government’s fiscal deficit stood at 3% of annual estimates at the end of May in the 2024-25 financial year, a period that included the Lok Sabha elections during which the Model Code of Conduct (MCC) came into effect.
During the corresponding period of the previous financial year, the budget deficit – the difference between government expenditure and revenue – amounted to 11.8% of the budget estimates (BE) for 2023-2024.
For the current fiscal, the government forecasts the fiscal deficit to be 5.1% of GDP, which would amount to Rs 16,85,494 crore.
According to data from the Controller General of Accounts (CGA), the fiscal deficit for April-May 2024 was Rs 50,615 crore, or 3% of the BE for 2024-25. During the same period in the previous financial year, it was 11.8% of BE.
Net tax The turnover for April-May 2024 stood at Rs 3.19 lakh crore, or 12.3% of the BE for 2024-25, compared to 11.9% of the BE for 2023-24 in the corresponding period.
By the end of May 2024, the total expenditure reached Rs 6.23 lakh crore, which represents 13.1% of the BE for the financial year. For comparison, it was 13.9% of the BE in the same period the year before.
In 2023-24, the central government budget deficit of 5.6% of GDP outperformed previous estimates of 5.8%, attributed to higher revenues and lower expenditures.
Under the Fiscal Responsibility & Budget Management (FRBM) Act, the government is targeting a fiscal deficit of 4.5% by 2025-2026.
