India's fiscal deficit for April-August in FY24 reached Rs 6.42 trillion, accounting for 36% of the full-year target of Rs 17.87 trillion. This figure was higher compared to the same period in the previous fiscal year. The government aims to reduce the fiscal deficit to 5.9% of GDP by the end of the current financial year.
The primary deficit, which excludes interest payments, stood at Rs 2.75 trillion, constituting 38.9% of the full-year target. Despite fiscal challenges, net tax revenue in the first five months of FY24 reached Rs 8.04 trillion, a 34.5% of the annual estimate. Corporate tax collections showed remarkable growth, surpassing Rs 2.39 trillion. The government's emphasis on capital expenditure, reaching Rs 3.74 trillion, is expected to drive economic recovery and long-term growth.