The Union Budget FY26, announced on Saturday, shows that the fiscal deficit declined between April to December 2024 compared to the corresponding period last year. While it stood at ₹9.82 lakh crore last year during the April-December period, it stood at ₹9.14 lakh crore in the April-December period 2024. This accounts for 56.7% of the overall ₹16.13 lakh crore target of the government set for the entire FY25. While amount-wise India’s fiscal deficit came down on a YoY basis, as a percentage of the full-year target, in FY24, it stood at 55% compared to FY25’s 57.6%.
Total Expenditure – Total Receipts
The total expenditure for the period April to December 2024 was ₹ 32.32 lakh crore which shows an increase from ₹3054 lakh crore of the April-December period in 2023. While the expenditure increased, the receipts also went up from ₹20.72 lakh crore during April-December 2023 to ₹23.18 lakh crore in the corresponding period in 2024.
The capital expenditure (Capex) on the other hand, stood at ₹6.85 lakh crore for the period in talk, which shows a nominal increase from 2023’s corresponding period when Capex stood at ₹6.74 lakh crore.
Gross Tax Revenue
On the other hand, the gross tax revenue for the nine months that ended on 31 December 2024 was ₹27.50 lakh crore, where there has been an increase from the previous year’s same period when it stood at ₹24.83 lakh crore.
The tax devolution to states increased from ₹7.47 lakh crore in the previous year (2023’s April-Dec) to ₹9.01 lakh crore for the corresponding period in 2024.
Monthly Analysis
Coming to the monthly analysis of the revenues, and expenditures, the fiscal deficit for the month of December 2024 stood at ₹67500 crore which is significantly down from ₹75700 crore of December 2023’s deficit. The total receipts for the month stood at ₹4.24 lakh crore rising from ₹3.26 lakh crore in December 2023. The total expenditure stood at ₹4.91 lakh crore in December 2024 compared to ₹4.02 lakh crore in December 2023.
Capital expenditure for December 2024 rose to ₹1.72 lakh crore way higher than ₹87985 crore of December 2023. Gross tax revenue went up from ₹4.41 lakh crore in December 2023 to ₹4.90 lakh crore in December 2024.
Fiscal Deficit Target
In this Budget, the fiscal deficit India target set by the government for this financial year FY25 is 4.9% of the Gross Domestic Product while it was 5.6% of GDP a year back in 2023-24.
Wrapping up
The government has been successfully reducing the fiscal deficit over the years. This helps the economy to boom and reduce dependence on foreign currency. This also boosts the domestic economy and helps it grow.
Source: CNBC TV18
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