SBI Life will have to pay a fine
The Centre’s fiscal deficit in the first five months of the current financial year, i.e. April to August 2024, was 27 per cent of the full-year target. Government data released on Monday said that according to the Comptroller General of Accounts (CGA) data, the fiscal deficit (difference between expenditure and revenue) stood at Rs 4,35,176 crore at the end of August. The deficit in the same period of fiscal year 2023-24 was 36 percent of the budget estimate (BE). In the general budget, the government has estimated to bring the fiscal deficit to 4.9 per cent of the gross domestic product (GDP) during the current financial year 2024-25. In the last financial year 2023-24, the deficit was 5.6 percent of GDP.
What does the report say?
The government aims to limit the fiscal deficit to Rs 16,13,312 crore during the current financial year. Giving information on the revenue and expenditure figures of the Central Government for the first five months of 2024-25, the Comptroller General of Accounts said that the net tax revenue in the first five months of the current financial year was 8.7 million lakh rupees. This is 33.8 percent of the budget estimate. On the other hand, net tax collection at the end of July 2023 was 34.5 percent.
Increase in public spending
The total expenditure of the central government till August was Rs 16.5 lakh crore. This is 34.3 percent of the budget estimate. Spending in the same period last year amounted to 37.1 percent of the budget estimate. Of the total expenditure, Rs 13,51,367 crore was in the revenue account and Rs 3,00,987 crore was in the capital account. Of the total revenue expenditure, Rs 4,00,160 crore went towards interest payments.
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What is the fiscal deficit?
The fiscal deficit shows the difference between government expenditures and revenues over a given period of time. When the government spends more of its resources, it is called a fiscal deficit. The fiscal deficit is calculated as a percentage of the country’s gross domestic product (GDP) or the amount spent on revenue.
