India's fiscal deficit for the first 10 months of this fiscal year through January stood at 11.91 lakh crore rupees, or 67.8% of revised annual estimates, government data showed today. From the 58.9% reported in the corresponding year-ago period, the fiscal deficit increased. 9.77 lakh crores of rupees were collected in total, while 31.68 lakh crores were spent from April to January. They met the amended budget goal for this fiscal year by 81.3% and 75.7%, respectively.
The total amount of collections was 19.20 lakh crore rupees, of which 16.89 lakh crore rupees were tax-related and 2.31 lakh crore rupees were not. Tax and non-tax revenues fell short of the revised projections by 80.9% and 88.2%, respectively, compared to 87.7% and 92.9% in the same time last year.
To mitigate the effects of a rise in international energy prices, the government slashed taxes on gasoline and diesel in May. Nonetheless, other analysts asserted that the fiscal situation will likely be improved by windfall gain tax and additional tax collection from GST above and beyond the budget.
Data showed that the revenue shortfall was 6.78 lakh crore rupees, or 61% of the budgeted amount for the fiscal year.
Finance Minister Nirmala Sitharaman maintained India's goal to reduce the fiscal shortfall from 6.7% of gross domestic product in the previous fiscal year to 6.4% of gross domestic product when she unveiled the federal budget for the upcoming fiscal year.
The entire estimated receipts other than borrowings for this fiscal year are estimated to be Rs 24.3 lakh crore, of which Rs 20.9 lakh crore are net tax receipts. The updated estimate of total expenditures is Rs 41.9 lakh crore, of which Rs 7.3 lakh crore is accounted for by capital expenditures.
New Delhi spent approximately 4 trillion rupees on major subsidies, including food, fertiliser, and petroleum. This was slightly more than the 76% of budgeted spending during the same period last year, at 77% of the revised annual objective.
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