India's Fiscal Deficit at 8.1% of Annual Target in Q1

The Indian government's fiscal deficit reached 8.1% of its full-year target by the end of Q1 2024-25, amounting to Rs 1.35 trillion. The Union Budget aims to reduce it to 4.9% of GDP for the year, down from 5.6% in 2023-24. First-quarter net tax revenue and expenditure figures were also released.

According to government data released on Wednesday, India's fiscal deficit for the first quarter of the financial year 2024-25 reached 8.1% of the full-year target.

The Controller General of Accounts (CGA) reported that the deficit in absolute terms was Rs 1,35,712 crore by the end of June. This figure stood at 25.3% of the Budget Estimates (BE) during the corresponding period of last year.

The Union Budget aims to reduce the fiscal deficit to 4.9% of GDP for the current year, down from 5.6% in 2023-24. The government aims to contain the annual deficit at Rs 16,85,494 crore.

The CGA also revealed that net tax revenue for the first three months of the fiscal year was Rs 5,49,633 crore, or 21.1% of BE. Expenditure for the same quarter was Rs 9,69,909 crore, or 20.4% of BE, with Rs 7.88 lakh crore spent on the revenue account and Rs 1.81 lakh crore on the capital account. Interest payments were reported at Rs 2,64,052 crore.

Fiscal deficit is defined as the difference between total government expenditure and revenue and indicates the required government borrowings.

(With inputs from agencies.)