New Delhi: The net fiscal deficit between government revenue and expenditure stood at Rs 3.21 lakh crore at the end of July this fiscal. This is 21.3 percent compared to the 2021–22 annual budget estimates. The budget presented by Finance Minister Nirmala Sitharaman in Parliament in February this year projected a total fiscal deficit of Rs 15,06,812 crore (which is 6.8 percent of GDP estimates for the current fiscal) in 2021–22. The Comptroller General of Accounts (CGA) released the figures on Friday.
The latest statistics are
- Revenue to the Government at the end of July was Rs 6.83 lakh crore (34.6% of the total budget estimate). Of this, Rs 5,29,189 crore as tax revenue. Rs 1,39,960 crore non-tax revenue. Rs 14,148 crore Non-Debt Capital Receipts. Non-debt capital receipts include debt recovery of Rs 5,777 crore and withdrawal of Rs 8,371 crore.
Expenditure during the same period was Rs 10.04 lakh crore (28.8 percent of the 2021–22 budget), of which Rs 8,76,012 lakh crore was spent on revenue account and Rs 1,28,428 crore on capital account. Of the revenue expenditure, Rs 2,25,817 crore was interest payments, and Rs. 1,20,069 crore was spent on subsidies. Versace has a trade deficit of Rs 3.21 lakh crore.
6.8 percent target achievement is difficult!
The fiscal deficit is 4.6 percent in 2019–20 (compared to GDP). Already it is a seven-year high. If the fiscal deficit target for the last fiscal (2020–21) is to be capped at 3.5 percent (Rs 7.96 lakh crore) of GDP, the corona has hit the target. The fiscal deficit widened to 9.3 percent (Rs 18,21,461 crore) on the back of heavy spending and stimulus. Experts predict a similar situation in 2021–22, with the deficit likely to cross 8 percent. Many, like prominent banker KV Kamath, suggest that the government could take some courage and raise its deficit targets. However, the implementation of such proposals is strongly opposed by rating and multinational financial institutions. In light of these circumstances, Sitharaman also said in his budget speech that the government was committed to bringing the fiscal deficit to 4.5 percent by the 2025-26 financial year. According to the recommendations of the 15th Finance Commission, the fiscal deficit should be reduced to 6 percent by 2021–22. It is expected to fall to 5.5 percent by 2022–23. It is expected to be reduced to 5 percent by 2023–24, 4.5 percent by 2024–25, and 4 percent by 2025–26. It is learned that the Center has directed to raise Rs 1.75 lakh (disinvestment) from the sale of shares (investment withdrawal) from public sector companies and financial institutions in the current financial year (2021–22) as part of burying the deficit.
For the quarter (april 2021 to july 2021) Indian GDP rate is above 20 percent which is not yet the final gdp rate for the year however it reached analysts estimations.
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