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India's fiscal deficit reaches 93% of BE at Rs 6.52 lakh crore in April-September

01 Nov 2019 Evaluate

The Controller General of Accounts (CGA) in its latest data has showed that India's fiscal deficit reached nearly 93% of the Budget Estimate (BE) at Rs 6.52 lakh crore in the first half (April-September) of the current fiscal year (2019-20). In absolute terms, the fiscal deficit or the gap between expenditure and revenue was Rs 6,51,554 crore as on September 30, 2019. The deficit had stood at 95.3% of the 2018-19 BE in the corresponding month a year ago.

The government has pegged the fiscal deficit for the current financial year at Rs 7.03 lakh crore, aiming to restrict the deficit at 3.3% of the gross domestic product (GDP). Low revenue collections have become a reason to worry about the fiscal deficit. The government has let go of revenues to the tune of Rs 1.45 lakh crore by announcing cuts in corporate tax in September with a view to boosting the faltering economy.

As per the CGA data, revenue receipts of the government during the April-September 2019-20 period rose to 41.6% of the BE compared to 40.1% in the corresponding period last year. In absolute terms, revenue receipts stood at Rs 8,16,467 crore at the end of September. For the entire 2019-20, the revenue receipts have been pegged at Rs 19.62 lakh crore.

Besides, the capital expenditure was 55.5% of the BE as compared to 54.2% in the year-ago period. Total expenditure during April-September stood at Rs 14.88 lakh crore or 53.4% of the BE, same as the corresponding period of the previous financial year. The government has pegged its total expenditure for the financial year 2019-20 at Rs 27.86 lakh crore.

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