India's budget deficit for April–November was Rs 9.07 lakh crore, or 51% of the goal for FY24

 India's budget deficit for April–November was Rs 9.07 lakh crore, or 51% of the goal for FY24

India's budget deficit for April–November was Rs 9.07 lakh crore, or 51% of the goal for FY24

Just November saw a fiscal deficit of Rs 1.03 lakh crore for the government, which is 53% less than it was in the same month the previous year.

By 2025–2026, the central government hopes to have reduced the budget deficit to less than 4.5% of GDP.

According to data made public by the Controller General of Accounts on December 29, the fiscal deficit of the federal government grew from Rs 8.04 lakh crore in April-October to Rs 9.07 lakh crore in April-November.

The fiscal deficit for the initial one eight months of the current fiscal year, at Rs 9.07 lakh crore, represents 50.7% of the goal for the whole year, which is Rs 17.87 lakh crore.

58.9% of the budget deficit for the fiscal year 2022–2023 was reached between April and November of 2022.

The Center's monthly budget deficit decreased for the fourth consecutive month in October, coming in at Rs 1.03 lakh crore, or 53% less than it was a year earlier. This was caused by both a decrease in central government spending and an almost twofold increase in revenues.

While capital spending increased by barely 2% to Rs 38,721 crore in November, the government's overall spending fell 14% year over year to Rs 2.58 lakh crore. The Center said that, as of April-November, it is currently falling short of the run-rate required to reach its record full-year capital spending goal of Rs 10 lakh crore, with two-thirds of the 2023–24 period already completed. The amount is 5.86 lakh crore rupees. About 58.5 percent of what was intended.

In the first eight months of 2023–24, the total amount spent by the government was Rs 26.52 lakh crore, a nine percent increase over the same time the previous year. A 43% increase in non-tax income as a result of the significant excess transferred by the Reserve Bank of India (RBI) in May helped to drive up overall revenues from April to November, which increased by 19% year over year to Rs 17.46 lakh crore.

With four months remaining, the Center's non-tax income from April to November, at Rs 2.84 lakh crore, has almost reached the total collected for 2022–2023 and is just Rs 17,285 crore short of this year's goal.

However, taxes were the source of the greatest boost to the government's coffers; net tax income increased by 149% in November, while total tax receipts increased by 21% to Rs 2.08 lakh crore.

The Center sent more money (Rs 1.17 lakh crore) to the states in November 2022 than it did in November 2023 (Rs 72,961 crore), which resulted in a significant rise in net tax revenues in November.

The Center's net tax collection is decreased by transfers to the states in the form of tax devolution.

The remarkable rise in corporation tax revenues from year-over-year to November's gross tax collections was mostly caused by this development; personal income tax collections increased by a greater 13 percent. Corporate tax revenues from April to November were Rs 5.14 lakh crore, up 20% from the previous year, while personal income tax collections increased by 29% to Rs 5.67 lakh crore.

The Center aims to collect Rs 9.23 lakh crore for corporate income tax and Rs 9.01 lakh crore for personal income tax, according to the Budget 2023–24. In the meanwhile, Rs 23.31 lakh crore is the budgeted objective for net tax collection. Between April and November, the Center collected a net amount of Rs 14.36 lakh crore.

In the months of December and March, the government gets two large amounts of advance tax.

The finance ministry's confidence that it would easily fulfill the budget deficit goal of 5.9 percent of GDP for 2023–24 will be further bolstered by the most recent batch of government financial statistics. In order to reach the goal of 4.5% of GDP for 2025, Finance Minister Nirmala Sitharaman is anticipated to declare a significant decrease in the budget deficit for the next year in her Budget for 2024–2025, which she will deliver on February 1, 2024. Will. -26.