Fiscal deficit touched 21.2% of target in Q1

The Central government’s fiscal deficit touched 21.2% of the annual target in the June quarter as against 18.2% in the year-earlier period, according to official data.

The fiscal deficit is the difference between total expenditure and revenue of the government. It indicates the total borrowing that are needed by the government.

In actual terms, the fiscal deficit was at ₹3.51 lakh crore at the end of the first quarter of 2022-23, data from the Controller General of Accounts (CGA) data showed on Friday.

The country’s fiscal deficit is projected at 6.4% of the GDP for this fiscal ending March 2023 as against 6.71% for the previous year.

As per the monthly accounts of the Union government up to June 2022 released by the CGA, the receipts stood at ₹5,96,040 crore or 26.1% of the corresponding Budget Estimates (BE) 2022-23 of total receipts.

In the year-earlier period, the receipts stood at 27.7% of BE 2021-22.

In the latest June quarter, the total expenditure incurred by the central government was at ₹9,47,911 crore or 24% of corresponding BE 2022-23. It was at 23.6% of BE 201-22 in the corresponding period.

For 2022-23, the fiscal deficit of the government is estimated to be ₹16,61,196 crore.