India's fiscal deficit reaches 45% of annual target

Data released by the Controller General of Accounts reveals that India's fiscal deficit for April-October surged to Rs 8.04 lakh crore, marking an increase from Rs 7.02 lakh crore recorded in April-September. This substantial deficit accounts for 45.0 percent of the full-year target of Rs 17.87 lakh crore.

Comparatively, during the same period in the previous fiscal year, the deficit was 45.6 percent of the target for 2022-23, indicating a similar trajectory in deficit patterns.

The Centre showcased a declining fiscal deficit for the third consecutive month, reporting Rs 1.02 lakh crore in October, a 26 percent YoY decrease. However, this reduction stemmed primarily from a sharper contraction in the Centre's expenditure compared to its income.

In October, the Union government's total expenditure decreased by 14 percent YoY to Rs 2.75 lakh crore, with capital expenditure down by 15 percent at Rs 56,296 crore. Despite this, the Centre remains on track to achieve its annual capital expenditure target of Rs 10 lakh crore, having spent Rs 5.47 lakh crore from April to October, accounting for 54.7 percent of the set goal.