India's fiscal deficit for the first quarter of the financial year 2023-24 has soared to Rs 6.06 lakh crore, a significant increase from the Rs 3.41 lakh crore recorded in the same period the previous year, government data showed on Thursday (August 31).
The deficit stood at 20.5 percent of the Budget Estimates (BE) in the corresponding period of the financial year 2022-23, according to the data released by the Controller General of Accounts (CGA).
The fiscal deficit for Q1 now stands at approximately 33.9 percent of the projected Rs 17.87 lakh crore target for the entire fiscal year, indicating a challenging path ahead for fiscal management. The revenue gap has widened to Rs 3.02 lakh crore, up from Rs 1.623 lakh crore in the previous year.
On the spending front, the government's expenditure for Q1 surged to Rs 13.81 lakh crore, a substantial increase from Rs 11.27 lakh crore in the same period last year. Total receipts for the first quarter stood at Rs 7.751 lakh crore, slightly down from Rs 7.86 lakh crore in the corresponding quarter last year.
Tax revenue, a critical component of the government's income, reached Rs 8.94 lakh crore in Q1, a modest increase from Rs 8.69 lakh crore in the previous year.
Capital expenditure (capex), which includes investments in infrastructure and development projects, reached Rs 3.17 lakh crore in Q1, a notable increase from Rs 2.09 lakh crore in the previous year.
Revenue spending, which covers day-to-day operational expenses, amounted to Rs 10.64 lakh crore in Q1, up from Rs 9.18 lakh crore in the corresponding period last year.
