fiscal deficit of the center: Finance Minister Nirmala Sitharaman’s expectation of Centre’s fiscal deficit came true as it narrowed down to 6.4 per cent of GDP in 2022-2023 from 6.71 per cent in FY22. The government had earlier set a target of bringing down the fiscal deficit to 5.9 per cent of GDP during the current financial year 2023-24.
Fiscal deficit
Unveiling the central government’s revenue-expenditure figures for 2022-23, the Controller General of Accounts (CGA) said the fiscal deficit in absolute terms stood at Rs 17,33,131 crore (provisional), slightly less than the amount projected in the Revised Estimates Is. (re) in the budget. The CGA said the government received Rs 24.56 lakh crore (101 per cent of the Revised Estimates 2022-23 of total receipts) during 2022-23.
This includes Rs 20.97 lakh crore tax revenue (net from the Centre), Rs 2.86 lakh crore non-tax revenue and Rs 72,187 crore non-debt capital receipts.
Rs 9.48 lakh crore has been transferred to the state governments
Non-debt capital receipts include recovery of loans and miscellaneous capital receipts. About Rs 9.48 lakh crore has been transferred by the central government to the state governments as devolution of taxes, which is Rs 50,015 crore more than the previous year (2021-22).
total expenditure of the center
The CGA data also showed that the Centre’s total expenditure was Rs 41.89 crore (100 per cent of the corresponding revised estimate 2022-23), of which Rs 34.52 lakh crore was on the revenue account and Rs 7.36 lakh crore on the capital account. Of the total revenue expenditure, Rs 9.28 lakh crore was in the form of interest payments and Rs 5.31 lakh crore in the form of major subsidies.
According to the CGA, the revenue deficit for the fiscal year ending March 2023 was 3.9 per cent of GDP, while the effective revenue deficit was 2.8 per cent of GDP. Aditi Nair, Chief Economist and Head – Research and Outreach, ICRA, said the government was able to limit its FY2023 fiscal deficit to Rs 17.3 lakh crore, which is lower than the FY2023 RE, more than estimated revenue receipts and revenue With a small reduction in expenditure, compensating for the disinvestment miss and healthier than expected capex.
Net tax revenue of the government registered a healthy growth of 15.2 percent
“In FY2023, the government’s net tax revenue is set to register a healthy growth of 15.2 per cent, amid a 17.8 per cent contraction in non-tax revenue, a 7.8 per cent increase in revenue expenditure, and a robust 24.2 per cent increase in capex,” she said . Said. Meanwhile, another set of CGA data showed that the fiscal deficit in the first month of the current fiscal stood at 7.5 per cent of the budget estimate, higher than the 4.5 per cent recorded in April 2022. The deficit in absolute terms was Rs 1.33 lakh crore. ,
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