Govt Spending Curbs And Tax Growth Keep India’s Fiscal Deficit In Check

ENA Economy 2024-11-01 16:24:37 New Delhi, Nov 1 (KNN) The Indian government has maintained strict control over its fiscal deficit, reaching only 29 percent of the Budget Estimate during April-September 2024, according to data released Wednesday by the Controller General of Accounts (CGA). This notable restraint is primarily attributed to election-related spending restrictions and robust tax collection growth. The fiscal deficit target for the current financial year was set at Rs 16.13 lakh crore, equivalent to 4.9 percent of GDP, as outlined in the July Budget. Financial analysts suggest that based on current trends, the final deficit figure could potentially fall below the initial Budget Estimate. The possibility of a downward revision in capital expenditure for the full fiscal year could further contribute to a lower-than-projected deficit. Net tax receipts for the first half of the fiscal year reached Rs 12.65 lakh crore, accounting for 49 percent of the annual target, while total government expenditure stood at Rs 21.1 lakh crore, representing 44 percent of the yearly goal. Capital expenditure, which focuses on physical infrastructure development, amounted to Rs 4.15 lakh crore, achieving 37 percent of the annual target. The reduced government spending is largely attributed to the general elections period. Tax collection data for September revealed a 12 percent expansion in gross collections. While corporate tax revenues showed modest growth at 2 percent, income tax collections demonstrated robust performance with a 25 percent increase. However, experts note that these figures may be partially influenced by the timing of tax refund disbursements. (KNN Bureau) 39774 https://knnindia.co.in/news/newsdetails/economy/govt-spending-curbs-and-tax-growth-keep-indias-fiscal-deficit-in-check 2024-11-01 16:24:37 knnindia.co.in Govt Spending Curbs And Tax Growth Keep India’s Fiscal Deficit In Check