Iscal deficit touches 21.3% of target

E Centre has given lakh crore to tes as devolution hare of taxes

The central govent’s fiscal deficit stood at 1 lakh crore or 21.3% of the get estimates at the end of as per the data released by Controller General of ounts (CGA) on Tuesday. he deficit figures this fiscal ar much better than the ious financial year, when it ed to 103.1% of the estie, mainly on account of a p in expenditure to deal the Covid-19 pandemic. he fiscal deficit or the gap een expenditure and revefor 2020-21 was 9.3% of the s Domestic Product (GDP), er than 9.5% projected in revised estimates in the get in February. s per the data, the central rnment’s total receipts d at ₹6.83 lakh crore or % of corresponding BE -22 up to July 2021. The receipts were 10.4% of the of 2019-20 in the same od of the last financial year. he total receipts till July , ₹5.2 lakh crore was tax nue (net to centre), ₹1.3 lakh crore non-tax revenue and ₹14,148 crore non-debt capital receipts.

Non-debt capital receipts consist of recovery of loans worth ₹5,777 crore and disinvestment proceeds of ₹8,371 crore. Further, ₹1.6 lakh crore was transferred to state governments as devolution of share of taxes by the Centre up to July 2021.

The government’s total expenditure was ₹10.04 lakh crore or 28.8% of the corresponding BE 2021-22. The expenditure was 34.7% of BE of 2019-20 in the same period last fiscal.

Of the total expenditure during the first four months of the current fiscal, ₹8.7 lakh crore was on the revenue account and ₹1.2 lakh crore on the capital account.

Out of the total revenue expenditure, ₹2.2 lakh crore was on account of interest payments and ₹1.2 lakh crore towards major subsidies.

“I think the 6.8% deficit target is likely to be met... The Govt could probably even better it, but I have a feeling they will not and instead choose to spend any additional revenues to support the revival process,” Axis Bank’s chief economist Saugata Bhattacharya said.

The government has pegged this fiscal’s deficit at 6.8% of the GDP. Improving tax collection should provide relief as experts say that the numbers can be achieved easily.

The deficit figures appear much better than the previous financial year, when it soared to 103.1% of the estimate, mainly on account of a jump in expenditure to deal with the Covid-19 pandemic.

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