Robust tax mop-up limits fiscal deficit to 50% of FY24 goal

The central government’s fiscal deficit stood comfortably at ₹9 trillion in the April to November period, about half of the estimated full-year target, as tax revenue grew in twin digits, and spending and subsidy outgo were broadly in line with estimates.

- Gireesh Chandra Prasad

With this, fiscal deficit, the gap between government spending and revenue that is met through borrowing, for the full fiscal looks set to remain in line with the ₹17.9 trillion estimated at the beginning of the year. The government has so far stuck to its borrowing calendar although it has secured Parliament’s approval for extra spending of a net ₹58,378 crore in the current fiscal involving cash outgo. The Centre has borrowed ₹8.1 trillion in the first eight months of this fiscal against the ₹12.3-trillion market borrowing target.