April-June fiscal deficit at Rs 2.74 trn, 18.2% of FY22 Budget Estimates

Net tax receipts in the first three months to end-June rose to Rs 4.12 trn, from Rs 1.35 trn during the same period in the previous fiscal year

The central government's fiscal deficit stood at Rs 2.74 trillion or 18.2 per cent of the full year's Budget estimate at the end of June, according to data released by the Controller General of Accounts (CGA) on Friday.

The fiscal deficit at the end of June 2020 was 83.2 per cent of the Budget Estimates (BE) of 2020-2 at Rs 6.62 trillion, after a fall in tax receipts due to pandemic lockdown that led to the worst recession in seven decades.

In absolute terms, the fiscal deficit was at Rs 2,74,245 crore at the end of June.

For the current financial year, the government expects the fiscal deficit at 6.8 per cent of GDP or Rs 15,06,812 crore. The fiscal deficit or the gap between expenditure and revenue for 2020-21 was 9.3 per cent of the Gross Domestic Product (GDP), better than 9.5 per cent projected in the revised estimates in the Budget in February.

As per CGA data, the government received Rs 5.47 trillion (27.7 per cent of corresponding BE 2021-22 of total receipts) up to June 2021. The amount comprises Rs 4.12 trillion of tax revenues, Rs 1.27 trillion of non-tax revenues and Rs 7,402 crore of non-debt capital receipts. The receipts were 6.8 per cent of BE at the end of June 2020.

Non-debt capital receipts consists of recovery of loans worth Rs 3,406 crore and disinvestment proceeds of Rs 3,996 crore.

Further, Rs 1,17,524 crore was transferred to state governments as devolution of share of taxes by the Government of India up to June 2021.

At the end of June, CGA said that total expenditure incurred by the government was Rs 8.21 lakh crore (23.6 per cent of corresponding BE 2021-22). Out of the total amount, Rs 7.10 lakh crore was on revenue account and Rs 1.11 lakh crore was on capital account.

Out of the total revenue expenditure, Rs 1.84 trillion was for interest payments and about Rs 1 trillion was on account of major subsidies.