Q1 fiscal deficit narrows to Rs 2.74 lakh cr as tax receipts increase

The Centre announced on Friday that its fiscal deficit stood at Rs 2.74 lakh crore or 18.2 per cent of the full year's Budget estimate at the end of June.

The Centre's fiscal deficit at the end of June 2020 was 83.2 per cent of the Budget Estimates (BE) of 2020-2 at Rs 6.62 lakh crore. This was due to a fall in tax receipts caused by the COVID-19 pandemic lockdown that had led to the worst recession in seven decades.

The Centre also announced that it collected Rs 5,47,399 crore as its total revenue through various means up to June 2021, according to data released by the Controller General of Accounts (CGA) on Friday. The sum collected till now amounts to 27% of the corresponding Budget Estimates for the financial year 2021-22.

The amount comprises Rs 4,12,680 crore collected through tax revenue (net to Centre), Rs 1,27,317 crore through non tax revenue and Rs 7,402 crore via non-debt receipts.

These non-debt capital receipts further consist of Rs 3,406 crore collected via recovery of loans and Rs 3,996 crore through disinvestment proceeds.  

"Rs. 1,17,524 crore has been transferred to State Governments as Devolution of Share of Taxes by Government of India up to this period," noted a government press release.

Up to June, the total expenditure incurred by the Centre stands at Rs 8,21,644 crore. This amounts to 23.6% of corresponding Budget Estimates for the financial year 2021-22.

Out of the total expenditure incurred by the Centre, Rs 7,10,148 crore is on revenue account and Rs 1,11,496 crore is on capital account. While Rs 1,84,295 crore is on account of interest payments and Rs 1,00,090 crore is on account of major subsidies.

Also Read: India's GDP to grow in double digits in Q1: ICRA