India’s fiscal deficit as a percentage of the gross domestic product (GDP) touched 4.56 per cent as of December 2019 with total receipts pegged at rs. 11.77 lakh cr against a higher expenditure of rs. 21.09 lakh cr, government data released recently revealed. The fiscal deficit for fiscal 2019-20 (till March 31, 2020) has been revised to 3.8 per cent now.
Government’s gross tax collection stood at rs. 13.83 lakh cr (53 per cent of the budget estimates). The net tax revenue of the central government was at rs. 9.04 lakh cr, 55 per cent of the budget estimates, after deducting devolution to the states to the tune of rs. 4.76 lakh cr and rs. 2,480 cr towards the National Disaster Response Force.
The non-tax revenue accrued to the centre was rs. 2.41 lakh cr whereas other receipts were pegged at rs. 31,000 cr, according to a report. The government released rs. 54,621.14 cr to the states as their share in central taxes and duties as well as rs. 6,989.38 cr as recommended by the Finance Commission in January.
As per the recommendations made by the Finance Commission, the states received rs. 7,499.89 cr in December last year. During the same period, the government released rs. 2,714.03 cr towards various schemes. In January 2020, the states received much lower rs. 101.29 cr.
Out of the total government expenditure of rs. 21.09 lakh cr, which is 76 per cent of the budget estimates, revenue expenditure was rs. 18.54 lakh cr and capital expenditure rs. 2.55 lakh cr. Fiscal deficit was pegged at rs. 8.07 lakh cr, which was 11 per cent of budget estimates.
“As a percentage of the GDP, fiscal deficit is 4.56 per cent. The revenue receipts are sufficient to cover only 56 per cent of the expenditure,” the Accounts Review Report of the Finance Ministry said.