26 C
New Delhi
Thursday 21 November 2019
Economy Fiscal deficit in first 6 months of Modi 2.0:...

Fiscal deficit in first 6 months of Modi 2.0: Rs 6.52 lakh crore

CAG says that in April-September 2019-20, the government has been able to earn through revenue collections just 41.6% of what was targeted

-

- Advertisment -

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

The second Narendra Modi government is far removed from the fiscal deficit target set in the Budget presented in Parliament in the current fiscal year of Rs 7.03 trillion, which is 3.3% of the GDP. At the end of September, the Union government’s fiscal deficit stands at Rs 6.52 trillion. The datum is part of the statistics of the Controller General of Audit (CGA) released Thursday.

Though the cost to the exchequer varied, the income did not come as expected, with the government of India set to miss the deficit target even on the annual basis as the gap is huge. In the first six months of the current financial year, the deficit is already 93% of what it had budgeted for, which means it is not left with the scope of spending generously. It should be noted that the financial year in India starts 1 April and 3 March happens to be the last day of a fiscal year.

According to government statistics, as of 30 September, the central government’s fiscal deficit or the difference between its expenditure and income was about Rs 6,51,554 crore. However, the deficit stood at 95.3% of the 2018-19 Budget estimate in the same month last year, as per the data released by the CAG.

In September, the central government had announced a corporate tax exemption to strengthen the economy. As a result of this decision, the government earned less than Rs 1.45 trillion worth of revenue. Experts say that the theory that ‘lower taxes lead to higher collections’ takes time to realise and there is no reason for panic. However, they point out in the same vein that the Modi government’s welfare schemes, despite the DBT, drains the treasury excessively and that the political masters of the economy must soon devise ways to make the classes that are being empowered self-sufficient.

Data from the CAG say that in the April-September half of the fiscal year 2019-20, the government has been able to earn through revenue collections just 41.6% of what was budgeted. During the previous financial year, the government’s actual revenue collection was 40.1% of the target.

The government had set a target of earning $ 19.62 trillion in the current financial year. At the end of September, the revenue it could collect amounts to Rs 8,16,467 crore.

On the other hand, the Centre had budgeted a target of spending Rs 27.86 trillion for the entire financial year. But at the end of September, the government’s spending stood at Rs 14.88 trillion.

In the era of Arun Jaitley, however, the fiscal deficit for the current fiscal was 3.4% for the current fiscal as of 1 February this year when ad hoc finance minister Piyush Goyal had presented the Budget. For 2019-20, the government too retains the fiscal deficit at 3.4% of the GDP.

Leave a Reply

Opinion

Anil Ambani: From Status Of Tycoon To Insolvency

Study the career of Anil Ambani, and you will get a classic case of decisions you ought not take as a businessman and time you better utilise

तवलीन सिंह, यह कैसा स्वाभिमान?

‘जिस मोदी सरकार का पांच साल सपोर्ट किया उसी ने मेरे बेटे को देश निकाला दे दिया,’ तवलीन सिंह ने लिखा। क्या आपने किसी क़ीमत के बदले समर्थन किया?

Rafale: One Embarrassment, One Snub For Opposition

Supreme Court accepts Rahul Gandhi's apology for attributing to it his allegation, rejects the review petition challenging the Rafale verdict

Guru Nanak Jayanti: What First Sikh Guru Taught

While Guru Nanak urged people to 'nām japo, kirat karo, vand chhako', he stood for several values while he also fought various social evils

Muhammed Who Inconvenienced Muslims

Archaeologist KK Muhammed had earlier got on the nerves of the leftist intelligentsia for exposing their nexus with Islamic extremists
- Advertisement -

Elsewhere

Chit funds: Will amended law make investments safer?

Chit funds have a dark history in India, the only country where this financial practice exists, but the law has always been a late riser

Sarma wants fresh NRC for Assam during pan-Indian exercise

Himanta Biswa Sarma had begun seeing flaws in the NRC exercise when the process had barely begun; he stood vindicated on 31 August

PMUDAY in 1,797 unauthorised colonies of Delhi

The application of PMUDAY does not, however, mean that the issues Delhi's unauthorised colonies face have all been addressed

JEE: Why no Bangla, asks CM; you opted out, reminds guv

The JEE used to be conducted in English alone for a long time. Then they added Hindi. This year, Gujarati is a regional language in which questions can be answered

NRC across India, says Shah; not in West Bengal, retorts Banerjee

Home Minister Amit Shah said the NRC exercise would be undertaken across India, but Bengal CM Mamata Banerjee wouldn't allow it in her State

You might also likeRELATED
Recommended to you

For fearless journalism

%d bloggers like this: