New Delhi: The central government’s fiscal deficit stood at Rs 11 lakh crore at the end of January, touching 63.6 per cent of the revised annual target, while in the corresponding period last year, the fiscal deficit was 67.8 percent of revised estimates or RE of the Union Budget 2022-23. Also, the growth of eight key infrastructure sectors slowed to a 15-month low of 3.6 per cent in January, on account of the poor performance of key sectors, two separate government data showed on Thursday.
As per the data released by Controller General of Accounts (CGA), the government’s fiscal deficit is estimated at Rs 17.35 lakh crore or 5.8 per cent of the GDP for 2023-24. “The government's total receipts stood at Rs 22.52 lakh crore (81.7 percent of corresponding RE 2023-24 of total receipts) as of January 2024. This comprised Rs 18.8 lakh crore tax revenue (net), Rs 3.38 lakh crore of non-tax revenue and Rs 34,219 crore of non-debt capital receipts. Non-debt capital receipts consist of the recovery of loans and miscellaneous capital receipts,” the CGA said.
The data also showed the total expenditure incurred by the Centre was Rs 33.54 lakh crore (74.7 percent of corresponding RE 2023-24), out of which Rs 26.33 lakh crore is on revenue account and Rs 7.2 lakh crore on capital account. “Rs 8,20,250 crore has been transferred to state governments as devolution of share of taxes by the central government up to this period, which is Rs 1,52,480 crore higher than the previous year,” the CGA data said.
Out of the total revenue expenditure, it said that Rs 8,21,731 crore was on account of interest payments and Rs 3,15,559 crore on major subsidies. Commenting on the data, Aditi Nayar, chief economist, ICRA, said: “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.”
The Narendra Modi-led government in the interim Budget refrained from announcing populist measures, which is expected to help it trim the fiscal deficit to 5.1 per cent of the GDP next fiscal and 4.5 per cent in FY26. While the nominal GDP growth for the next financial year has been pegged at 10.5 per cent against the 11 per cent estimated earlier.
Meanwhile, the official data also showed that the growth of eight key infrastructure sectors slowed to a 15-month low of 3.6 per cent in January, on account of poor performance of sectors like refinery products, fertiliser, steel and electricity. The growth of eight core sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 4.9 per cent in December and it was 9.7 per cent in January 2023, while the previous low level of growth rate was recorded at 0.9 per cent in October 2022.
“The output growth of refinery products and fertiliser was in the negative zone. And the pace of increase in the output of coal, steel, and electricity decelerated during the month under review. However, crude oil, natural gas, and cement production recorded a positive growth in the month of January,” the data showed. #End#
