Data Alert
India Apr-Nov fiscal deficit INR 8.47 tln, 52.5% of FY25 target
This story was originally published at 17:12 IST on 31 December 2024
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--Govt Apr-Nov fiscal deficit 52.5% of INR 16.133 tln target for FY25
--Govt Apr-Nov fiscal deficit INR 8.466 tln vs INR 9.066 tln year ago
--Govt Apr-Nov total expenditure INR 27.410 tln vs INR 26.522 tln year ago
--Govt Apr-Nov total receipts INR 18.944 tln vs INR 17.456 tln year ago
--Govt Apr-Nov capital expenditure INR 5.135 tln vs INR 5.856 tln year ago
--Govt Apr-Nov gross tax revenue INR 22.610 tln vs INR 20.420 tln year ago
--Govt: Apr-Nov tax devolution to states INR 8.12 tln vs INR 6.01 tln yr ago
--Govt Nov fiscal deficit INR 958 bln vs INR 1.029 tln year ago
--Govt Nov total expenditure INR 2.671 tln vs INR 2.578 tln year ago
--Govt Nov total receipts INR 1.713 tln vs INR 1.549 tln year ago
--Govt Nov capital expenditure INR 470 bln vs INR 387 bln year ago
--Govt Nov gross tax revenue INR 2.283 tln vs INR 2.075 tln year ago
NEW DELHI – The Indian government's fiscal deficit in the first eight months of 2024-25 (Apr-Mar) was INR 8.466 trillion, down 6.6% on year, data released by the Controller General of Accounts Tuesday showed. The fiscal deficit for Apr-Nov accounted for 52.5% of the full-year target of INR 16.133 trillion set in the Union Budget for FY25.
The fiscal deficit in Apr-Nov of FY24 had accounted for 50.7% of the full-year target and 46.5% in Apr-Oct this year. The government has set a fiscal deficit target of 4.9% of GDP for FY25 against 5.6% of GDP achieved last year. According to the government's medium-term fiscal consolidation roadmap, the fiscal deficit is to be lowered to below 4.5% by FY26.
Total receipts of the government rose 8.5% on year to INR 18.944 trillion in Apr-Nov, while total expenditure was up 3.3% at INR 27.410 trillion. Capital expenditure during Apr-Nov declined 12.3% on year to INR 5.135 trillion.
The government's total receipts were driven higher by a 10.7% on-year increase in gross tax collections to INR 22.610 trillion during Apr-Nov. Gross tax mop-up remained robust in the first eight months of FY25, thanks to a boost from income tax collections even as corporate tax collections disappointed.
In November, total revenue was up 10.6% at INR 1.713 trillion, thanks to a 60.9% surge in income tax collections to INR 743 billion. On other hand, corporate tax collections were down 26.6% last month at INR 238 billion.
While revenues were robust in November, total expenditure only rose 3.6% on year to INR 2.671 trillion, largely led by a 21.3% jump in capital expenditure to INR 469 billion. The fiscal deficit in November was down 6.9% on year at INR 958 billion.
Non-tax revenue was up 50.2% on year at INR 4.270 trillion in Apr-Nov, with the surge mainly attributable to the record-high surplus transfer of INR 2.11 trillion from the Reserve Bank of India in May.
With total revenue collection staying robust in Apr-Nov and capital expenditure lagging, economists expect the government to overachieve its fiscal consolidation target for this year. Economists expect the government to lower the fiscal deficit to 4.8% of GDP from the 4.9% target set in the Budget. Informist had reported earlier this month that the government has space to reduce its FY25 fiscal deficit by 10-20 basis points below the Budget target of 4.9% of GDP.
The Controller General of Accounts detailed the government's accounts for November and Apr-Nov as follows (in INR billion):
| November | October | November | Year-on-year % change | |
| 2024 | 2024 | 2023 | ||
| Revenue receipts | 1,661.88 | 818.94 | 1,523.98 | 9.0% |
| Net tax revenue | 1,384.62 | 398.14 | 1,337.98 | 3.5% |
| Non-tax revenue | 277.26 | 420.80 | 186.00 | 49.1% |
| Other receipts | 34.49 | 23.65 | 8.59 | 301.5% |
| Total receipts | 1,713.34 | 861.00 | 1,548.71 | 10.6% |
| Revenue expenditure | 2,201.49 | 3,108.25 | 2,190.34 | 0.5% |
| Capital expenditure | 469.55 | 515.79 | 387.21 | 21.3% |
| Total expenditure | 2,671.04 | 3,624.04 | 2,577.55 | 3.6% |
| Fiscal deficit | 957.70 | 2,763.04 | 1,028.84 | (-)6.9% |
| Apr-Nov 2024-25 |
Apr-Nov 2023-24 |
Year-on-year % change | Budget estimates | % of actuals to Budget estimates | ||
| 2024-25 | 2023-24 | |||||
| Revenue receipts | 18,704.55 | 17,201.20 | 8.7% | 31,292.00 | 59.8% | 65.3% |
| Net tax revenue | 14,434.35 | 14,357.55 | 0.5% | 25,834.99 | 55.9% | 61.6% |
| Non-tax revenue | 4,270.20 | 2,843.65 | 50.2% | 5,457.01 | 78.3% | 94.3% |
| Other receipts | 89.81 | 88.59 | 1.4% | 500.00 | 18.0% | 14.5% |
| Total receipts | 18,944.08 | 17,455.83 | 8.5% | 32,072.00 | 59.1% | 64.3% |
| Revenue expenditure | 22,275.02 | 20,665.22 | 7.8% | 37,094.01 | 60.1% | 59.0% |
| Capital expenditure | 5,135.00 | 5,856.45 | (-)12.3% | 11,111.11 | 46.2% | 58.5% |
| Total expenditure | 27,410.02 | 26,521.67 | 3.3% | 48,205.12 | 56.9% | 58.9% |
| Fiscal deficit | 8,465.94 | 9,065.84 | (-)6.6% | 16,133.12 | 52.5% | 50.7% |
End
Reported by Shubham Rana
Edited by Akul Nishant Akhoury
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