IANS | 29 Mar, 2024
India’s fiscal deficit during the first 11 months of 2023-24 stood
at Rs 15.01 lakh crore which is 86.5 per cent of the revised annual
estimate, data released by the Controller General of Accounts on
Thursday showed.
The revised annual estimate for the fiscal
deficit in the vote-on-account budget on February 1, was at Rs 17.35
lakh crore for the full financial year 2023-24.
The decline in the
fiscal deficit, despite an increase in the government’s expenditure on
big ticket infrastructure projects to spur economic growth, was due to
higher tax receipts and an increase in non-tax revenue.
The
government's capital expenditure rose to Rs 8.06 lakh crore in
April-February which works out to 84.8 per cent of the revised annual
estimate, compared to the corresponding figure of Rs 5.90 lakh crore in
the same period of the previous financial year.
The Finance
Ministry aims to reduce the fiscal deficit -- the difference between the
government’s income and expenditure -- to 5.8 per cent of gross
domestic product during 2023-24, from 6.4 per cent in the previous
fiscal year.
A lower fiscal deficit reflects stronger
macroeconomic fundamentals as it also means that the government will
need to borrow less which leaves more money in the banking system to
lend to corporates for investment. This in turns fuels growth and
creates more employment. A smaller fiscal deficit also helps to keep
inflation in check.
