Apr-Jul fiscal deficit narrows to 9-year low, reaches 21.3% of FY22 target

Non-tax revenues such as dividends from RBI and public sector banks yielded Rs 1.39 trillion

High tax collections on tighter rules for the goods and services tax (GST) as well as a bit of economic recovery and expenditure compression resulted in the Centre’s fiscal deficit narrowing to 21.3 per cent of the Budget Estimates (BE) in the first four months of the current fiscal year.

In absolute terms, the fiscal deficit at Rs 3.3 trillion was lowest in the first four months in nine years.

The deficit had breached BE at this point of time in the previous year.  That and transparency in food subsidies had led to the fiscal deficit widening to 9.5 per cent of