The Centre’s fiscal deficit touched 20.5 per cent of the annual target at the end of July 2022-23 against 21.3 per cent a year ago, reflecting improvement in public finance, according to the official data released on Wednesday.
In actual terms, the fiscal deficit, the difference between expenditure and revenue, was Rs 3.41 lakh crore during the April-July period this financial year. A fiscal deficit is a reflection of government borrowings from the market.
As per the data released by the Controller General of Accounts (CGA), the government’s receipts, including taxes, stood at Rs 7.85 lakh crore or 34.4 per cent of the Budget Estimates (BE) for 2022-23. During the year-ago period, it was nearly the same at 34.6 per cent.
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The tax revenue stood at Rs 6.66 lakh crore or 34.4 per cent of this year’s BE. Last year too, the government had managed to mop 34.2 per cent of its annual estimate during April-July.
The data further revealed that the central government’s total expenditure was Rs 11.26 lakh crore or 28.6 per cent of the BE 2022-23, almost same as in the year-ago period.
Capital expenditure was 27.8 per cent of the full-year budget target compared to 23.2 per cent in the corresponding period last year, as per the monthly account of the Union government up to July 2022, released by the CGA.
For 2022-23, the fiscal deficit of the government is estimated to be Rs 16.61 lakh crore or 6.4 per cent of the GDP.
Meanwhile, NSO on Wednesday released GDP data which revealed India’s economy achieved its fastest annual expansion in a year in the April-June quarter.
The Gross Domestic Product (GDP) in the three months to June 30, 2022 was recorded at 13.5 per cent. However, this is lower than the Reserve Bank of India’s (RBI’s) projection of 16.2 per cent GDP growth in Q1FY23.
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