India’s fiscal deficit widens in April-August

India’s fiscal deficit for the period April-August reached 4.35 trillion rupees ($51.93 billion), representing 27 per cent of the estimated annual target, according to government data released on Monday.

Net tax receipts during the reporting period amounted to 8.74 trillion rupees, or 34 per cent of the annual goal. This figure is higher than the 8.04 trillion rupees collected in the corresponding period last year.

Total government expenditure for April-August was 16.52 trillion rupees, or 34 pe cent of the annual target. This is lower than the 16.72 trillion rupees spent in the same period last year, primarily due to general elections.

Capital expenditure for the first five months totaled 3.01 trillion rupees, or 27 per cent of the annual target. This is lower than the 3.74 trillion rupees spent in the corresponding period of the previous year.

The Indian government has set its fiscal deficit target at 4.9 per cent of the gross domestic product for the current fiscal year, compared to 5.6 per cent in the previous fiscal year.

Attribution: Reuters

Subediting: M. S. Salama