Govt’s fiscal deficit widens to 58.9% of FY23 target

The central government's fiscal deficit widened to ₹9.78 lakh crore in the April-November period, around 58.9% of the Budget Estimates for 2022-2023, data released today by the Controller General of Accounts (CGA) shows. The fiscal deficit recorded till November 2022 is higher than the 46.2% recorded during the same period last year.

The government's total receipts in the year-to-date period stood at ₹14.6 lakh crore, as compared to ₹13.7 lakh crore in the same period last year. The monthly receipts in November saw a decline at ₹79,059 crore as compared to ₹99,294 crore during the same month last year.

The government's overall expenditure in the April-November period rose to ₹24.4 lakh crore, around 61.9% of the Budget 2022-23 estimates, as compared to ₹20.7 lakh crore (59.6% of BE) during the same month last year. The monthly expenditure rose to ₹2.9 lakh crore in November 2022 as compared to ₹2.4 lakh crore during year-ago period.

So far this year, the government's fiscal deficit was recorded the highest in September 2022 at ₹3.52 lakh crore, followed by June at ₹2.1 lakh crore and October at ₹1.8 lakh crore.

The government's revenue receipts up to November 2022 stood at ₹14.2 lakh crore -- 64.6% of the budget estimates -- of which ₹12.2 lakh crore was net tax revenue, while ₹1.98 lakh crore was non-tax revenue. The non-debt capital receipts up to November 2022 stood at ₹41,481 crore, 52.3% of the full-year target as 11% in the year-ago period.

The government's revenue deficit up to November 2022 was recorded at ₹5.7 lakh crore, 57.8% of the full-year target of ₹9.9 lakh crore, while the primary deficit stood at 60.1% of the full-year target at ₹4.3 lakh crore.

This month, the finance minister said in Parliament that the fiscal deficit in the first half of the current financial year (April-September) remained significantly lower than the moving average of the last five years on the back of tax buoyancy seen during the period.

This ministry's half-yearly review showed the fiscal deficit in H1 FY23 was about ₹6.20 lakh crore, which was about 37.3% of the budget estimate (BE) 2022-23 and significantly lower than five years’ moving average of 85.8%.

It may be noted that in the first half of the current financial year, the tax revenue (net to centre) at 52.3% of the budgeted amount was significantly higher than the last five years moving average of 41.6% of the budget estimate, the ministry stated. On the expenditure front, the total expenditure comprising revenue expenditure and capital expenditure in H1 of FY 2022-23 at about ₹18.24 lakh crore was 46.2% of the budget estimate, as per the ministry.