India’s fiscal deficit during April-January 2024 stood at Rs 11.03 lakh crore, hitting 63.6 per cent of the full FY24 revised target, according to the latest official data released on February 29. The deficit is, however, lower than the Rs 11.9 lakh crore, or 67.8 per cent of the full-year target, recorded in April-January FY2023.
According to the latest data from the Controller General of Accounts (CGA), the total receipts stood at Rs 22.52 lakh crore during April-January FY24, while overall expenditure was at Rs 33.55 lakh crore. They were 81.7 per cent and 74.7 per cent of this fiscal year’s revised budget target, respectively.
While net tax revenues rose by 11 per cent, non-tax revenues expanded by 46 per cent boosted by the RBI dividend, amid a tepid 1.4 per cent growth in revenue expenditure, and a strong 26.5 per cent YoY expansion in capex.
Aditi Nayar, chief economist and head (research and outreach) at ICRA, said, “The Government of India’s fiscal deficit stood at Rs 11 trillion or 64 per cent of the FY2024 RE in April-January FY2024, lower than the Rs 11.9 trillion recorded in April-January FY2023. While net tax revenues rose by 11 per cent, non-tax revenues expanded by 46 per cent boosted by the RBI dividend, amidst a tepid 1.4 per cent growth in revenue expenditure, and a strong 26.5% YoY expansion in capex.”
While there may be some slippage in the disinvestment target and capex may trail the FY2024 RE, ICRA does not expect the revised fiscal deficit target of Rs 17.3 lakh crore for FY2024 to be breached, she said.
The GoI’s capex slumped to Rs 47,600 crore in January 2024 from nearly Rs 80,000 crore in January 2023, kicking off Q4 FY2024 on a sour note. With Rs 2.3 lakh crore left to be incurred in February-March 2024 to meet the full-year target for capex this fiscal, substantially higher than the Rs 1.7 lakh crore recorded in the same months of FY2023, ICRA expects the government’s capex to undershoot the FY2024 RE by at least Rs 0.5 lakh crore, Nayar said.
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