Fiscal deficit target achieved at 67.8 percent- Dinamani
The fiscal deficit target for the current fiscal year 2022-23 reached 67.8 percent in January.
Fiscal deficit is the difference between government expenditure and revenue. Fiscal deficit is also a measure of how much the government needs to borrow to cover spending.
A target has been set to control the central government’s financial deficit within Rs.17.55 lakh crore in the current financial year. This is 6.4 percent of the Gross Domestic Product (GDP) value. In this case, the Control Directorate of Accounts (CGA) has informed that the financial deficit has reached Rs.11.9 lakh crore during the period from April to January of the current financial year. This is 67.8 percent of the overall target.
During the same period of the last financial year 2021-22, the fiscal deficit was only 58.9 per cent of the overall target. Fiscal deficit has widened due to increased expenditure and declining revenue in the current financial year.
The tax revenue in the first 10 months of the current financial year is Rs 16,88,710 crore. This is 80.9 percent against the budget target. Tax revenue was 87.7 percent of the overall target during the same period last fiscal.
It is noted in the budget that the fiscal deficit of the government will be reduced to 5.9 percent in the next fiscal year 2023-24 and to 4.5 percent by the fiscal year 2025-26.