India's Fiscal Deficit Reaches At Rs 8.04 Lakh Crore From April-October 2023, 45% Of Budgeted Target

India's fiscal deficit came in at Rs 8.04 lakh crore from April to October 2023, which would be 45% of the budgeted target of Rs 17.87 lakh crore for FY24. In October month, the fisal deficit narrowed to Rs 1.02 lakh crore compared to Rs 1.38 lakh crore in the same month a year ago.

However, broadly in the first seven months of FY24, the fiscal deficit widened from Rs 7.58 lakh crore that was recorded between April to October 2022.

In general terms, the fiscal deficit is the difference between the government's revenue and expenditure. This indicator rises when expenditure surpasses the revenue generated by the government in a respective financial year.

Meanwhile, spending in October slipped to Rs 2.75 lakh crore versus Rs 3.20 lakh crore in the same month last year. From April to October 2023, spending however has shot up to Rs 23.94 lakh crore, compared to Rs 21.44 lakh crore in the corresponding period of the previous year.

The Monthly Account of the Union Government of India up to the month of October 2023 has been consolidated and reports published.

As per the government data, the receipt stood at Rs 15,90,712 crore between April to October 2023 -- 58.6% of the budgeted estimates. Of the total, tax revenue which is net to Centre, stood at Rs 13,01,957 crore, while non-tax revenue and non-debt capital receipts were at Rs 2,65,765 crore and Rs 22,990 crore respectively. Further, Non-Debt Capital Receipts consist of Recovery of Loans of Rs 14,990 crore and Miscellaneous Capital Receipts of Rs 8,000 crore.

Notably, the government has transferred Rs 5,28,405 crore to State Governments as Devolution of Share of Taxes up to this period which is Rs 93,966 crore higher than the previous year.

Meanwhile, the total Expenditure incurred by the Government of India is Rs 23,94,412 crore, 53% of corresponding BE 2023-24. Out of which Rs 18,47,488 crore is in the Revenue Account and Rs 5,46,924 crore is in the Capital Account. Out of the Total Revenue Expenditure, Rs 5,45,086 crore is on account of Interest Payments and Rs 2,31,694 crore is on account of Major Subsidies.

Overall, revenue spend stood at Rs 18.48 lakh crore, versus Rs 17.35 lakh crore in April to October last year. The revenue gap was at Rs 2.80 lakh crore between April to October 2023, as compared to Rs 3.85 lakh crore in the same period a year ago.

India's real GDP growth comes to around 7.6% in the second quarter of FY24, stronger than the street's estimates of 6.8%. The latest economic print also surpassed RBI's Q2 target of 6.5% for the second consecutive quarter. Meanwhile, gross value added (GVA) witnessed a growth of 7.4%.