Government data released on Wednesday showed that the Centre's fiscal deficit at the end of the first quarter has widened to 8.1 per cent of the full-year target. According to data released by the Controller General of Accounts (CGA), the absolute fiscal deficit - the difference between expenditure and revenue - stood at Rs 1,35,712 crore by the end of June. The deficit stood at 25.3 per cent of the budget estimate (BE) in the same period of fiscal year 2023-24.

Estimated to bring it to 4.9 percent

In the Union Budget, the government has projected to bring down the fiscal deficit to 4.9 percent of gross domestic product (GDP) in the current financial year 2024-25. The deficit was 5.6 percent of GDP in 2023-24. Overall, the government aims to limit the fiscal deficit to Rs 16,85,494 crore during the current financial year.

What do the statistics say?

Revealing the revenue-expenditure figures of the central government for the first three months of 2024-25, the CGA said the net tax revenue for the current fiscal year was Rs 5,49,633 crore or 21.1 per cent of the BE. Net tax collection at the end of June 2023 was 18.6 per cent.

Total central government expenditure in the first quarter stood at Rs 9,69,909 crore or 20.4 per cent of BE. In the year-ago period, the expenditure had crossed 23 per cent of BE. Of the total expenditure, Rs 7.88 lakh crore was on the revenue account and Rs 1.81 lakh crore on the capital account.

What is fiscal deficit?

The fiscal deficit is the difference between the total expenditure and revenue of the government. It is an indication of the total borrowing required by the government.