India's Fiscal Gap at ₹7.02 Lakh Crore for April-Sept, Government Reports
- Posted on October 31, 2023
- Business
- By Arijit Dutta
- 507 Views
Government data released on Tuesday, October 31, revealed that India's fiscal deficit for the first six months of the current fiscal year, spanning from April to September, has reached ₹7.02 lakh crore. This figure accounts for approximately 39.3% of the annual estimates.
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Government data released on Tuesday,
October 31, revealed that India's fiscal deficit for the first six months of
the current fiscal year, spanning from April to September, has reached ₹7.02
lakh crore. This figure accounts for approximately 39.3% of the annual
estimates.
Comparing this to the corresponding
period in the previous fiscal year, there is a noticeable increase from ₹6.19
lakh crore to ₹7.02 lakh crore. The fiscal deficit is a critical economic
indicator, representing the gap between the government's income and its expenditures. It is essentially the amount that the government needs to borrow
to cover its expenses.
For the current fiscal year, the Indian government has set a target of ₹17.87 lakh crore for the fiscal deficit, which translates to approximately 5.9% of the country's Gross Domestic Product (GDP). This target is part of a broader economic strategy to reduce the fiscal deficit from the previous fiscal year, which stood at 6.4% of the GDP.
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Union Finance Minister Nirmala
Sitharaman, while presenting the federal budget for the current fiscal year,
emphasized the government's commitment to narrowing the fiscal gap. The goal is
to bring the fiscal deficit down to 5.9% of the GDP, representing a reduction
from the 6.4% figure recorded in the last financial year.
In 2022-23, the fiscal deficit was 6.4%
of the GDP, a slight improvement from the earlier estimate of 6.71%. The Indian
government's efforts to manage the fiscal deficit are crucial in maintaining
financial stability and ensuring that the country's economic growth remains on
a sustainable path.
