FY22 fiscal deficit at 6.71%; lower than budget estimate

India's fiscal deficit for the 2021-22 financial year is 6.71% of the gross domestic product (GDP), which is lower than the 6.9% projected in the finance ministry's revised estimates, the government data released today shows.

The revenue-expenditure data released by the Controller General of Accounts (CGA) shows the fiscal deficit in absolute terms in 2021-22 stood at ₹15,86,537 crore (provisional). The revenue deficit at the end of the financial year stood at ₹10,32,947 crore (4.37%) in absolute terms.

As India was locked down due to the first wave of Covid, economic activity ground to a halt. That led to a high fiscal deficit of 9.5% in FY21. The Centre had initially pegged the fiscal deficit at 6.8% of the GDP, but the estimate was revised to 6.9% during Budget 2022-23.

Meanwhile, the government's revenue receipts in the fiscal year stood at ₹21,68,426 crore, while net tax revenue was ₹18,20,382 crore.

Non-tax revenue for 2021-22 stood at ₹3,48,044 crore, while net debt capital receipts and non-debt capital receipts (recovery of loans) were at ₹39,208 crore and ₹24,570 crore, respectively.

Non-debt capital receipts (others) stood at ₹14,638 crore, while total receipts for the fiscal year 2021-22 stood at ₹22,07,634 crore. India's revenue expenditure for the fiscal year 2021-22 was ₹32,01,373 crore.

Revenue expenditure with interest payments was ₹8,05,390 crore and capital expenditure was ₹5,92,798 crore in 2021-22. The capital expenditure in loans disbursed stood at ₹58,920 crore, while the total expenditure was ₹37,94,171 crore. India's primary deficit stood at ₹7,81,147 crore.

Meanwhile, the gross domestic product of the country increased 4.1% year-on-year during the March quarter, shows government data released today. "GDP at constant prices (2011-12) in Q4 2021-22 is estimated at ₹40.78 lakh crore, as against ₹39.18 lakh crore in Q4 2020-21, showing a growth of 4.1%," says Ministry of Statistics and Programme Implementation (MoSPI).

This brings the GDP growth for the March quarter to an one-year low despite managing to outdo expectations by most analysts. Meanwhile, GDP growth for the full fiscal 2022 stood at 8.7%, against a contraction of 6.7% in the previous fiscal.