Fiscal deficit: just 3% of GDP in April-May; Rs 3.19 lakh crore earned as net tax revenue
The total expenditure of the government till the end of May was Rs 6.23 lakh crore or 13.1% of the budget estimate for the current financial year. It was 13.9% a year ago. The fiscal deficit was 5.6% of GDP in 2023-24.
The central government's fiscal deficit was only 3% or Rs 50,615 crore as a proportion of GDP in April-May. It worked to 11.8% of the budget estimate in April-May 2023-24. The government has pegged a target to keep it at 5.1% of GDP or Rs 16.85 lakh crore for the current financial year. According to data released by the Comptroller and Auditor General on Friday, net tax revenue has been Rs 3.19 lakh crore or 11.8% of the budget estimate for 2024-25. It was 11.9% in the same period a year ago.
The government's Total liabilities went up 3.4 % to Rs 171.78 lakh crore by March this year from Rs 166.14 lakh crore by the end of December. Public debt was 90.2 % of gross liabilities in the quarter under review, it added. The Finance Ministry said the returns on domestic bonds softened due to the borrowing plan announced in the interim budget being lower than expected.
Wherein the government's total expenditure was Rs 6.23 lakh crore till May-end or 13.1% of the budget estimate for the current financial year, which was 13.9% last year. The fiscal deficit was 5.6% of GDP in 2023-24.
With coal, natural gas, and power sectors doing better, the rate of growth of eight major infrastructure industries of the country stood at 6.3% in May 2024. Production of these industries grew by 6.7% in April. On its part, data showed that while the growth rate of coal, natural gas, and electricity production was 10.2%, 7.5%, and 12.8%, respectively, that about fertilizer, crude, and cement saw a decline. ICRA Chief Economist Aditi Nair said that for the fourth consecutive month, these industries grew more than 6% but declined marginally in May.
