Home Business India’s fiscal deficit at ₹1.36 lakh crore or 8.1% of annual estimate for Q1 2024-25

India’s fiscal deficit at ₹1.36 lakh crore or 8.1% of annual estimate for Q1 2024-25

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India’s fiscal deficit at  ₹1.36 lakh crore or 8.1% of annual estimate for Q1 2024-25
India’s fiscal deficit at ₹1.36 lakh crore or 8.1% of annual estimate for Q1 2024-25

Jul 31, 2024 05:12 PM IST

Fiscal deficit narrowed to 8.1% of annual estimate, compared to 25.3% during the previous year’s first quarter

India’s fiscal deficit for the first quarter of the financial year 2024-25 was 1.36 lakh crore, which was 8.1% of the entire annual estimate, according to government data.

A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu. (Reuters)
A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu. (Reuters)

This represents significant narrowing as the fiscal deficit for Q1 2023-24 was 25.3% in comparison.

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The total receipts of 8.34 lakh crore was 27.1% of the year’s budget target, while it was 22.1% during the same quarter of the previous year.

The total expenditure of 9.70 lakh crore was 20.4% of the year’s budget target, while it was 23.3% during the same quarter of the previous year.

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Revenue receipts was 8.30 lakh crore, with tax revenue being 5.50 lakh crore and non-tax revenue being 2.80 lakh crore. Non-tax revenue increased due to the 2.11 lakh crore dividend payout by the Reserve Bank of India (RBI).

Tax revenue was 21.1% this year’s first quarter, compared to 18.6% in the first quarter of last year, while non-tax revenue was 70.1% compared to 51.4% last year.

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Finance Minister Nirmala Sitharaman had kept the fiscal deficit target to 4.9% in the Union Budget 2024 presented on July 23. This was below the 5.1% target seen in the interim budget presented in February.

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