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India’s budget deficit increases to reach 25.3% of the target for FY24

<p>According to figures provided by the Controller General of Accounts on July 31, the fiscal deficit of the federal government increased to Rs. 4.51 lakh crore in the quarter ending April-June from Rs. 2.10 lakh crore in the prior quarter.<img decoding=”async” class=”alignnone wp-image-106359″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-indias-budget-deficit-increases-to-reach-25-3-of-the-target-for-fy24-download-2023-08-01t173208.188.jpg” alt=”” width=”1449″ height=”1085″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-indias-budget-deficit-increases-to-reach-25-3-of-the-target-for-fy24-download-2023-08-01t173208.188.jpg 259w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-indias-budget-deficit-increases-to-reach-25-3-of-the-target-for-fy24-download-2023-08-01t173208.188-150×112.jpg 150w” sizes=”(max-width: 1449px) 100vw, 1449px” /></p>
<p>The fiscal deficit for the first three months of the current fiscal year, at Rs 4.51 lakh crore, represents 25.3% of the overall goal of Rs 17.87 lakh crore.</p>
<p>In the first three months of 2022–23, the budget deficit was 21.2% of the objective.</p>
<p>In April and May 2023, the fiscal deficit statistics was Rs 2.10 lakh crore. According to the figures, net tax revenues for April through June were Rs 4.3 lakh crore, or 18.6% of the annual projection, down from Rs 5.06 lakh crore in the previous equivalent period.</p>
<p>The Reserve Bank of India (RBI) dividend was larger than anticipated, which helped increase non-tax income in May and maintain the fiscal deficit for April and May to just 11.8% of the annual goal. As a result, the fiscal deficit increased sharply from April through June, by 28.3% YoY and by 62.9% in June.</p>
<p>On the other hand, revenue fell while spending increased in June. The overall income received by the Central government in June decreased 14.3% year over year, with net tax collection decreasing 21.5% to Rs 1.56 lakh crore.</p>
<p>However, compared to Rs 2.75 lakh crore in the last equivalent month, gross tax receipts rose 11.3% in June.</p>
<p>Overall, from April to June 2022–2023, the center’s overall collections increased by just 0.5%, while net tax income decreased by 14.3%.</p>
<p>Capex is still increasing.</p>
<p>The new report on government finances reveals that the administration’s emphasis on encouraging economic development by pushing hard for capital spending remained in June.</p>
<p>The numbers show that the Center’s spending increased by 62.8% in June to reach Rs 1.11 lakh crore, bringing the total for April through June to Rs 2.78 lakh crore. Due to the surge in capex in June, the Center’s overall expenditures for the previous month rose by 17.3% to Rs 4.25 lakh crore.</p>
<p>The entire expenditure for April through June was Rs 10.51 lakh crore, which is 10.8% more than the expenditure for April through June 2022.</p>

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