Fiscal deficit in H1 hits 39% of budget target

Central govt capex increases 43% YoY in April-Sept even as net taxes up by 15%

- DIPAK MONDAL

THE central government's fiscal deficit in the first half of 2023-24 has touched 39.3% of the full year target of ₹17.87 lakh crore compared to 37.3% of the budgeted target a year ago.

The fiscal deficit by the end of September 2023 was ₹7.02 lakh crore as compared to ₹6.2 lakh crore a year ago. The government has set a fiscal deficit target of 5.9% of the Gross Domestic product (GDP) in the current financial year, 50 basis points lower than 6.4% in the previous year.

Capital expenditure (capex) of the government rose 43% year-on-year (YoY) in the first half of the current financial year to ₹4.90 lakh crore, which is 49% of the full year target of ₹10 lakh crore.

The capital expenditure in September 2023 rose 105% to ₹1.16 lakh crore compared to ₹57,000 crore in August 2023.

Capex grew 29% in September YoY. Capex is the money spent by the government for creating infrastructure and other assets.