Last updated: February 28, 2023, 5:24 PM IST
The central government’s budget deficit reached 67.8 percent of its full-year target at the end of January due to higher spending and lower revenues, according to official data released Tuesday.
In reality, the budget deficit or the gap between expenditure and revenue collection in the April-January period was Rs 11.9 lakh crore, according to data from the Controller General of Accounts (CGA).
The budget deficit in the comparable 2021-22 period was 58.9 percent of that year’s revised estimate (RE) in the budget.
For the full year 2022-23, the government expects the deficit to reach Rs 17.55 lakh crore or 6.4 per cent of GDP.
The CGA data revealed that the net tax collection in the first 10 months of this tax was Rs 16,88,710 crore or 80.9 per cent of RE 2022-23.
In the comparable period last financial year, the collection amounted to 87.7 percent of the RE 2021-22.
The total expenditure of the central government was Rs 31.67 lakh crore or 75.7 per cent of RE 2022-23.
In the EU budget presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on February 1, the budget deficit target for 2023-2024 is 5.9 percent of GDP.
For the current year ending March 2023, the deficit has been maintained at 6.4 percent of GDP. The government borrows from the market to finance its budget deficit.
The government plans to bring the budget deficit below 4.5 percent of GDP by 2025-2026.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)