News Brief

India's FY24 Fiscal Deficit Benefits From Strong Revenue And Expenditure Management: Here's All About It

Swarajya Staff

Jun 01, 2024, 05:03 PM | Updated 05:03 PM IST

Representative Image
Representative Image

India's fiscal deficit for FY24 stood at Rs 16.54 lakh crore, compared to the budgetary target of Rs 17.86 lakh crore, reaching 95.3 per cent of the target, according to a report by The Economic Times.

The central government's fiscal deficit for FY24 was 5.6 per cent of GDP, below the revised estimate of 5.8 per cent.

Net tax receipts for the fiscal year were higher than projected, totalling Rs 23.27 lakh crore, which is 100.1 per cent of the target.

Total expenditure for FY24 was Rs 44.43 lakh crore, or 99 per cent of the targeted expenditure. The government’s capital spending on infrastructure projects amounted to Rs 9.49 lakh crore.

In the interim budget for this fiscal year, Finance Minister Nirmala Sitharaman reduced the fiscal deficit target to 5.8 per cent from the earlier forecast of 5.9 per cent of GDP.

She has also set a fiscal deficit target of 5.1 per cent for the next fiscal year, with an aim to reduce it to below 4.5 per cent of GDP by 2025-26.

The lower fiscal deficit target for 2024-25 was anticipated due to expectations of strong tax collections and expenditure rationalisation, along with reduced spending on subsidies.

New Delhi’s fiscal efforts in the last fiscal year, ending 31 March 2024, were bolstered by the Reserve Bank of India’s transfer of Rs 87,416 crore as surplus to the central government.

This fiscal year, the RBI has provided a substantial Rs 2.11 lakh crore boost as a dividend.

The interim budget for the ongoing financial year had anticipated a dividend of Rs 1.02 lakh crore from the RBI, public sector banks, and other financial institutions.

India's net direct tax collection grew by 17.7 per cent year-on-year, reaching Rs 19.58 lakh crore for the fiscal year ending March 2024, exceeding revised estimates by Rs 13,000 crore and budget estimates by Rs 1.35 lakh crore.

Initially, the government had budgeted Rs 18.23 lakh crore as net direct tax revenue for 2023-24, which was later revised to Rs 19.45 lakh crore.

GST collections for FY24 increased by 11.7 per cent, reaching Rs 20.14 lakh crore.

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