The central government’s fiscal deficit at the end of September touched ₹6.5 trillion or 92.6% of what was budgeted for the full fiscal, data released by the Controller General of Accounts. Fiscal deficit had scaled 95.3% of the budgeted estimate in the same period a year ago. Usually, receipts pick up at the end of the fiscal although expenditure, especially during a period of economic slowdown, is made earlier in the fiscal, which gives the impression of a sharp mismatch between receipts and spending. The apparent mismatch usually gets offset at the end of the financial year. Finance minister Nirmala Sitharaman had said earlier that the government will frontload its spending this year. The government has set a fiscal deficit target of ₹7.03 trillion for the current fiscal, aiming to restrict it to 3.3% of the gross domestic product (GDP). The corporate tax rate cut announced in September aimed at boosting economic growth is estimated to cost the exchequer ₹1.45 trillion. CGA data showed that revenue receipt of ₹8.16 trillion at the end of September stood at 41.6% of the full year budget estimate. For FY20, revenue receipts have been pegged at ₹19.6 trillion. Central government’s total expenditure during April-September stood at ₹14.8 trillion or 53.4% of the full year estimate, same as the corresponding period of the previous financial year.

(Live Mint)