Fiscal Deficit For June Qtr Comes In At 21.2% Of Full-Year Target

As per the data released today by the Controller General of Accounts, the fiscal deficit of the centre for the April-June quarter is placed at Rs. 3.52 lakh crore, accounting for 21.2 percent of the full-year target.

Fiscal Deficit For June Qtr Comes In At 21.2% Of Full-Year Target

In the previous Fy22, the same was at Rs. 2.74 lakh crore in the first quarter. So, for the last June ender quarter it is almost over 28% more on a YoY basis.

For the full year of Fy23, the centre has targeted a fiscal deficit of Rs. 16.61 lakh crore or 6.4% of GDP.

In June alone, the fiscal deficit had been to the tune of Rs. 1.48 lakh crore. This is after the centre announced excise duty cut on petrol and diesel. There is a view by the economist that the centre's revenue shall be hit by over Rs. 80,000 crore in Fy23 due to excise duty cut.

While the centre's excise duty collection suffered, gross tax collection was higher. On an overall basis, total receipts were 8.9% more in comparison to last year for the June ended quarter.

Also, June was a good month with regard to capex as the Centre inched closer to its budget target of Rs. 7.5 lakh crore.

For the quarter, the total expenditure stood at Rs. 1.75 lakh crore or has been at 23.4% of the full-year target.

While until now centre's finances had been sound, there could be pressure emanating in upcoming months as global growth concerns weigh and there could be increased spending on fertiliser and food subsidy. Also, revenues may even see a hit in case the government announces further rebate on excise duty on fuel prices to lessen the end-user burden.

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