Fiscal Deficit Narrows 55% For April-December At Rs 9.82 Lakh Cr

India's fiscal deficit for the first nine months of this fiscal year until December was 9.82 lakh crore rupees, which is 55 per cent of the annual estimates, according to the latest government data. This means that the fiscal deficit has decreased from the same period last year, which reported a deficit of 59.8 per cent.

Total receipts for this period were Rs 20.72 lakh crore, while the overall expenditure between April to December was Rs 30.54 lakh crore. These figures represent 76.3 per cent and 67.8 per cent, respectively, of this fiscal year's budget target. In comparison, total receipts for the same period last year were 79.9 per cent of the estimate, while expenditure was narrower at 71.4 per cent.

Revenue receipts for this period were Rs 20.42 lakh crore, with tax revenue at Rs 17.30 lakh crore and non-tax revenue at Rs 3.12 lakh crore. Tax and non-tax revenues were 74.2 per cent and 103.5 per cent of the budgeted estimate, respectively. Although tax revenue was narrower than 80.4 per cent of the budget estimate in the last fiscal year, non-tax revenue swelled from 79.5 per cent of budget forecast in the same period last year.

The data shows that the revenue deficit was at Rs 3.38 lakh crore rupees, which is 38.9 per cent of the fiscal year's budget target. However, this is a reduction from the 56.3 per cent deficit in the same period during the previous year. The Finance Minister, Nirmala Sitharaman, had declared that India aims to narrow the fiscal gap to 5.9 per cent of gross domestic product from 6.4 per cent in the last financial year.

The Indian government is expected to stick to its fiscal course-correction strategy in the forthcoming interim budget for fiscal year 2025, which is set to be announced tomorrow. There are indications that populist spending or incentives may be avoided in preparation for the forthcoming general election, scheduled for the summer.

However, earlier speculations suggested that the Narendra Modi-led government might have to introduce various fiscal measures aimed particularly at the lower-income group, as well as steps to control the rising inflation rate, in order to secure a third term in power after the Lok Sabha elections next year.