Data Alert
India Apr-Jan fiscal deficit jumps to 74.5% of revised FY25 aim
This story was originally published at 17:26 IST on 28 February 2025
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--Govt Apr-Jan fiscal deficit 74.5% of revised FY25 target of INR 15.695 tln
--Govt Apr-Jan fiscal deficit INR 11.695 tln vs INR 11.026 tln year ago
--Govt Apr-Jan total expenditure INR 35.700 tln vs INR 33.547 tln year ago
--Govt Apr-Jan total receipts INR 24.004 tln vs INR 22.521 tln year ago
--Govt Apr-Jan capital expenditure INR 7.574 tln vs INR 7.212 tln year ago
--Govt Apr-Jan gross tax revenue INR 29.844 tln vs INR 27.062 tln year ago
--Govt: Apr-Jan tax devolution to states INR 10.74 tln vs INR 8.20 tln yr ago
--Govt Jan fiscal deficit INR 2.555 tln vs INR 1.203 tln year ago
--Govt Jan total expenditure INR 3.379 tln vs INR 3.005 tln year ago
--Govt Jan total receipts INR 824 bln vs INR 1.802 tln year ago
--Govt Jan capital expenditure INR 720 bln vs INR 476 bln year ago
--Govt Jan gross tax revenue INR 2.34 tln vs INR 2.237 tln year ago
NEW DELHI – The Indian government's fiscal deficit for the first 10 months of 2024-25 (Apr-Mar) was INR 11.695 trillion, up 6% on year, data released by the Controller General of Accounts Friday showed. The fiscal deficit in Apr-Jan accounted for 74.5% of the revised target of INR 15.695 trillion for FY25 as against 63.6% for the first 10 months of FY24.
In the FY26 Budget presented in Parliament on Feb. 1, the government had lowered the absolute fiscal deficit target for the current financial year by INR 437.85 billion. In Apr-Dec, the fiscal deficit accounted for 56.7% of the Budget target for FY25.
The sharp deterioration in the fiscal deficit in January was due to the Centre transferring a double instalment of tax devolution to states totalling INR 1.730 trillion during the month, 137% higher from a year ago. This led to the central government's total receipts more than halving in January to INR 824.07 billion.
The Centre is supposed to release tax devolution to states in 14 equal instalments every year. As such, this leads to two months where the instalment is double the usual monthly amount. However, so far in FY25, states have received more than the usual monthly amount on three occasions – June, October, and January, leading to an Apr-Jan tax devolution of INR 10.742 trillion, 31% higher from the same period last year.
To meet the tax devolution estimate of INR 12.869 trillion for FY25, the Centre needs to transfer INR 1.064 trillion in both February and March.
While the Centre's receipts fell sharply in January due to the jump in tax devolution to states, total expenditure rose 12% to INR 3.379 trillion, on the back of a 51% increase in capital expenditure to INR 720.22 billion. As a result, the fiscal deficit in January more than doubled from a year ago to INR 2.555 trillion.
In Apr-Jan, the Centre's capital expenditure amounted to INR 7.574 trillion, up 5% on year, with total expenditure up 6% at INR 35.700 trillion. Total receipts rose 7% on year to INR 24.004 trillion, with gross tax revenue up 10%. However, the sharp increase in tax devolution to states meant the net tax revenue for the Centre in Apr-Jan was only 1% higher from a year ago at INR 9.036 trillion.
The Controller General of Accounts detailed the government's accounts for January and Apr-Jan as follows (in INR billion):
| January | December | January | Year-on-year change | |
| 2025 | 2024 | 2024 | ||
| Revenue receipts | 804.78 | 4,202.55 | 1,756.20 | (-)54.2% |
| Net tax revenue | 605.05 | 3,996.18 | 1,499.09 | (-)59.6% |
| Non-tax revenue | 199.73 | 206.37 | 257.11 | (-)22.3% |
| Other receipts | 0.25 | 0.13 | 25.02 | (-)99.0% |
| Total receipts | 824.07 | 4,235.97 | 1,801.89 | (-)54.3% |
| Revenue expenditure | 2,658.38 | 3,192.55 | 2,529.56 | 5.1% |
| Capital expenditure | 720.22 | 1,718.37 | 475.57 | 51.4% |
| Total expenditure | 3,378.60 | 4,910.92 | 3,005.13 | 12.4% |
| Fiscal deficit | 2,554.53 | 674.95 | 1,203.24 | 112.3% |
| Apr-Jan | Apr-Jan | Year-on-year change | Revised estimates | % of actuals to revised estimates | ||
| 2024-25 | 2023-24 | 2024-25 | 2023-24 | |||
| Revenue receipts | 23,711.88 | 22,179.09 | 6.9% | 30,879.60 | 76.8% | 82.2% |
| Net tax revenue | 19,035.58 | 18,798.40 | 1.3% | 25,569.60 | 74.4% | 80.9% |
| Non-tax revenue | 4,676.3 | 3,380.69 | 38.3% | 5,310.00 | 88.1% | 90.0% |
| Other receipts | 90.19 | 125.55 | (-)28.2% | 330.00 | 27.3% | 41.9% |
| Total receipts | 24,004.12 | 22,521.28 | 6.6% | 31.469.60 | 76.3% | 81.7% |
| Revenue expenditure | 28,125.95 | 26,335.43 | 6.8% | 36,980.58 | 76.1% | 74.4% |
| Capital expenditure | 7,573.59 | 7,211.87 | 5.0% | 10,184.29 | 74.4% | 75.9% |
| Total expenditure | 35,699.54 | 33,547.30 | 6.4% | 47,164.87 | 75.7% | 74.7% |
| Fiscal deficit | 11,695.42 | 11,026.02 | 6.1% | 15,695.27 | 74.5% | 63.6% |
End
Reported by Siddharth Upasani
Edited by Tanima Banerjee
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