New Delhi, November 30 (IANS). According to recently released official data, the Centre’s fiscal deficit at the end of the first seven months (April-October) of the current financial year stood at 46.5 per cent of the target for the entire year.
This reflects the strong economic and financial position of the government. The government aims to bring the fiscal deficit to 4.9 per cent of gross domestic product (GDP) in the current financial year, from 5.6 per cent in 2023-24.
According to data released by the Controller General of Accounts (CGA), the overall fiscal deficit, the difference between the government’s expenditure and revenue, stood at Rs 7,50,824 crore during April-October this year.
The central government’s revenue-expenditure data for the first seven months of 2024-25 showed that net tax revenue was about Rs 13 lakh crore and 50.5 per cent of the budget estimate for the current fiscal year.
The government aims to limit the fiscal deficit to Rs 16.13 lakh crore during the current financial year.
India’s net direct tax collections, which include corporate tax and personal income tax, grew by 15.4 per cent to Rs 12.1 lakh crore during the current financial year from April 1 to November 10, according to the latest data released by the Central Board of Direct Taxes (CBDT). .
The direct collection target was set at Rs 18.23 lakh crore in the Union Budget 2023-24 and was later increased to Rs 19.45 lakh crore in the Revised Estimates (RE).
CBDT said the provisional direct tax collection after refunds was 7.40 per cent higher than the budget estimate and 0.67 per cent higher than the revised estimate.
Similarly, GST collections have also increased significantly due to increase in economic activities.
A surge in tax collections brings more money into the government coffers, which helps the government invest in large infrastructure projects to boost economic growth and pursue welfare schemes for the poor.
This also helps in controlling the fiscal deficit and strengthening the economic infrastructure of the economy.
A lower fiscal deficit means the government has to borrow less, leaving the bank with more money to borrow and invest in large companies.
This increases economic growth rate and creates more jobs. Low fiscal deficit also keeps the inflation rate under control, thereby providing stability to the economy.
–IANS
SKT/KR
