Fiscal deficit touched 95.3% of 2018-’19 target in April-September, says government
The fiscal deficit for the first half of the financial year stood at Rs 5.95 lakh crore.
India’s fiscal deficit touched 95.3% of the budgeted target during the April to September period, Mint reported on Thursday, citing data released by the Controller General of Accounts. The fiscal deficit for the first half of the financial year stood at Rs 5.95 lakh crore.
A government generates a fiscal deficit when it spends more than the revenue it earns. The government has targeted a fiscal deficit of 3.3% of the Gross Domestic Product in 2018-’19. In September, Union Finance Minister Arun Jaitley had expressed confidence in meeting the target.
The fiscal deficit from April to August was 94.7% of the target. The deficit in the first half of the previous financial year was 91.3% of the target.
Rising oil prices have lifted India’s import bills in the last few months, raising concerns over whether India will be able to limit its fiscal deficit to its target, according to Reuters.
During the April to September period, the government spent Rs 13.04 lakh crore, or 53.4% of the budget estimate, and earned Rs 7.09 lakh crore, 39% of the target.