Fiscal deficit down to ₹4.75 tn, core sector output recovers

The April-Sept 2024 fiscal deficit is lower than the ₹7.02 tn reported in the year-ago period

- Rhik Kundu

India's fiscal deficit narrowed to ₹4.75 trillion during the first half of the ongoing fiscal, accounting for 29.4% of the FY25 target, according to data from the Controller General of Accounts released on Wednesday.

The gap between the government's expenditure and revenue in April-September was lower than the ₹7.02 trillion reported in the year-ago period. This is on account of higher tax receipts, a significant dividend from the central bank, and restrained government capital expenditure in Q1 amid the general election.

Meanwhile, the country's core sector output, a key contributor to industrial production, showed signs of recovery in September, rebounding from a 42-month low in August.

Five of the eight core sectors recorded positive growth, signaling renewed momentum across nearly two-fifths of industries.

During H1, FY25, net tax receipts stood at ₹12.65 trillion, or 49% of the target set in the annual budget, against ₹11.60 trillion in the same period last year, according to the CGA data.