India's fiscal deficit between Apr-Oct 45% of FY24 target of Rs 17.87 trn

India's fiscal deficit between April and October in the current financial year (FY24) touched 45 per cent of the Centre's 2023-24 target of Rs 17.87 trillion, data released on Thursday said. In the corresponding period last year, the deficit was 45.6 per cent of the budget estimates for 2022-23.

The fiscal deficit is the difference between the expenditure and revenue of the Centre.

Between April and October this year, the fiscal deficit was recorded at Rs 8.04 trillion as compared to Rs 7.57 trillion in the same period last year. In the first six months of FY24, the fiscal deficit had touched 39.3 per cent of the full-year target. 

In the Union Budget, the government projected to bring down the fiscal deficit to 5.9 per cent of the gross domestic product (GDP) in the 2023-24 financial year.

The fiscal deficit was 6.4 per cent of the GDP in 2022-23, against the earlier estimate of 6.71 per cent.

According to the latest estimates, the revenue gap was Rs 2.8 trillion, as compared to Rs 3.85 trillion in the same period last year. The government spending jumped to Rs 23.94 trillion, higher as compared to Rs 21.44 trillion earlier. 

Earlier, Economic Affairs Secretary Ajay Seth said that the Centre is confident of meeting the fiscal deficit target in FY24 despite the rising food subsidy bill.

The Centre is also scheduled to announce the GDP figures for the second quarter of FY24 on Thursday evening.