Centre’s Fiscal Deficit at Rs 1.23 Lakh Crore, 8.2% of FY22 Target in May

The central government’s fiscal deficit stood at Rs 1.23 lakh crore or 8.2 per cent of the full year’s Budget Estimate at end-May 2021, as per the data released by the Controller General of Accounts (CGA). The fiscal deficit at the end of May 2020 was 58.6 per cent of the Budget Estimates (BE) of 2020-21.

In absolute terms, the fiscal deficit was Rs 1,23,174 crore at end-May 2021. The government expects the fiscal deficit for 2021-2022 at 6.8 per cent of GDP or Rs 15,06,812 crore.

The fiscal deficit or the gap between expenditure and revenue for 2020-21 was 9.3 per cent of the Gross Domestic Product (GDP), an improvement over 9.5 per cent projected in the revised estimates in the budget in February. As per the CGA data, the Centre received Rs 3,54,787 crore (17.95 per cent of corresponding BE 2021-22 of total receipts) for May 2021. This comprised Rs 2.33 lakh crore tax revenue (net to Centre), Rs 1.16 lakh crore of non tax revenue and Rs 4,810 crore of non debt capital receipts. Non debt capital receipts consist of recovery of loans Rs 815 crore and disinvestment proceeds of Rs 3,995 crore.

The total receipts were 2 per cent of the BE in the corresponding period last fiscal. It further said Rs 78,349 crore was transferred to state governments as Devolution of Share of Taxes by Government of India up to May, which is Rs 13,728 crore lower than the previous year. Total expenditure incurred by the Centre was Rs 4,77,961 crore (13.72 per cent BE), out of which Rs 4.15 lakh crore was on revenue account and Rs 62,961 crore on capital account. Out of the total revenue expenditure, Rs 88,573 crore was towards interest payments and Rs 62,664 crore on account of major subsidies.