The central government marginally undershot the fiscal

Solution

The central government marginally undershot the fiscal deficit target in FY23 at 6.36 per cent of gross domestic product (GDP) against 6.4 per cent in the revised estimates (RE). This is due to lower-than-estimated revenue expenditure even as the Centre’s capital expenditure (capex) exceeded the revised estimates. The revenue deficit for FY23 was also contained at 3.9 per cent of GDP against the RE of 4.1 per cent. Fiscal deficit for FY23 was at Rs 17.33 trillion, or 98.7 per cent of the RE of Rs 17.55 trillion, on the back of higher tax and non-tax revenue collections while non-debt capital receipts fell short of target. For FY23, net tax revenue came in marginally higher (0.5 per cent) at Rs 20.97 trillion than the RE of Rs 20.86 trillion. Besides, non-tax revenues for FY23 was at Rs 2.86 trillion, or nearly 9.3 per cent higher than the RE. Non-debt capital receipts, primarily disinvestment receipts, fell short of the FY23 target by 13.5 per cent.