India’s fiscal deficit touches 74.5% of full-year target at the end of January

India’s fiscal deficit touched 74.5% of the annual target at the end of January 2025, according to the data released by the Controller General of Accounts (CGA). In actual terms, the fiscal deficit was ₹11,69,542 crore during the April- January 2024-25 period.

The deficit was 63.6% of the Revised Estimates (RE) of 2023-24 in the year-ago period. The data showed that the central government’s tax revenue (net) was ₹19.03 lakh crore, or 74.4% of the RE of 2024-25. It was at 80.9% during the corresponding year of the last financial year.

Total expenditure during this period rose to ₹35.70 lakh crore, up from ₹33.55 lakh crore year-on-year, while total receipts increased to ₹24.00 lakh crore from ₹22.52 lakh crore. Capital expenditure reached ₹7.57 lakh crore, up from ₹7.21 lakh crore year-on-year.

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Gross tax revenue for the period stood at ₹29.84 lakh crore, higher than ₹27.06 lakh crore last year, while tax devolution to states increased to ₹10.74 lakh crore from ₹8.20 lakh crore year-on-year. For January 2025, the fiscal deficit widened to ₹2.56 lakh crore from ₹1.20 lakh crore in January 2024. Capital expenditure in the month rose to ₹72,000 crore, compared to ₹47,600 crore year-on-year.

Total receipts for January stood at ₹82,400 crore, lower than ₹1.80 lakh crore last year. Gross tax revenue for the month increased slightly to ₹2.34 lakh crore, up from ₹2.24 lakh crore year-on-year, while total expenditure rose to ₹3.38 lakh crore, compared to ₹3.01 lakh crore in the previous year.

A fiscal deficit is the difference between the total expenditure and revenue of the government. It is an indication of the total borrowing needed by the government.

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