Fiscal deficit hits 46.5% of annual target in 7 months: GoI

New Delhi: Government data revealed on Friday that the government of India fiscal deficit for the first seven months of FY 2024-25 stood at 46.5% of the annual target.

In absolute terms, the deficit — the gap between government spending and revenue — amounted to ₹7.51 lakh crore during April to October, as per the Controller General of Accounts (CGA). This compares to 45% of the Budget Estimates (BE) during the same period in FY 2023-24.

The GoI budget for 2024-25 aims to reduce the fiscal deficit to 4.9% of GDP, down from 5.6% in 2023-24. The government targets a total deficit of ₹16.13 lakh crore for the current fiscal year.

Revenue data shows that net tax collections reached about ₹13 lakh crore, or 50.5% of the annual target, by October. This is slightly lower than the 55.9% recorded by the end of September in FY 2023-24.

Total expenditure during April-October stood at ₹24.7 lakh crore, representing 51.3% of the budgeted estimate, compared to 53.2% during the same period last year. Of this, ₹20 lakh crore was revenue expenditure, while ₹4.66 lakh crore was allocated to capital spending.

The fiscal deficit reflects the government’s total borrowing requirement, calculated as the difference between expenditure and revenue.