Fiscal deficit moderates; GST revenue soars in Jan

CGA data showed that capital expenditure rose to ₹6.74 trillion during the April-December period of FY24

- Rhik Kundu & Gireesh Chandra Prasad

Two sets of data released by the government on the eve of the interim budget painted a picture of healthy fiscal performance.

The central government’s fiscal deficit in the first nine months of the current financial year stood at ₹9.82 trillion, or 55% of the annual estimate of ₹17.87 trillion, a moderation from the comparable period in the year before, according to data released by the Controller General of Accounts (CGA). Separately, central and state governments collected ₹1.72 trillion in goods and services tax (GST) revenue in January, the second highest since the indirect tax was rolled out more than six years ago, the finance ministry said, quoting the revenue collection up to 5pm on Wednesday.

The fiscal deficit for the first nine months of the last financial year was at ₹9.93 trillion, or 59.8% of the annual estimate of ₹16.61 trillion for FY23. The decline in the fiscal deficit despite a jump in government spending to fuel economic growth was due to higher tax and non-tax revenue.