The Central government's fiscal deficit widened to Rs 9.82 lakh crore in April-December from Rs 9.07 lakh crore in April-November, data released by the Controller General of Accounts on January 31 showed.At Rs 9.82 lakh crore, the fiscal deficit for the first nine months of the current financial year accounts for 55.0 percent of the full-year target of Rs 17.87 lakh crore. The fiscal deficit in April-December 2022 was 59.8 percent of the target for 2022-23.

Total receipts stood at 20.72 lakh crore rupees, while overall expenditure in April to December was at 30.54 lakh crore rupees. They were 76.3% and 67.8% of this fiscal year's budget target.Revenue receipts stood at 20.42 lakh crore rupees, of which tax revenue was 17.30 lakh crore rupees and non-tax revenue was 3.12 lakh crore rupees.Tax and non-tax revenues were 74.2% and 103.5% of the budgeted estimate. While tax revenue was narrower than 80.4% of budget estimate in the last fiscal year, non-tax revenue swelled from 79.5% of budget forecast in the same period last year.Revenue deficit was at 3.38 lakh crore rupees or 38.9% of the fiscal year's budget target, data showed. Revenue deficit narrowed from 56.3% in year-earlier period.

GST collections stay robust, crossed the Rs1.70 mark for three times in 2023-24

The gross GST revenue collected in the month of January, 2024 (till 05:00 PM of 31.01.2024) was Rs1,72,129 crore, which shows a 10.4% year-on-year growth over the revenue of ₹1,55,922 crore collected in January 2023 (till 05:00 PM on 31.01.2023), the Union finance ministry said in a statement.

Monthly GST revenues saw a significant jump in the current financial year. Collections crossed the Rs1.70 mark for three times in 2023-24, with April 2023 being the highest ever at Rs1,87,035crore. The second time was in October 2023, when ₹1,72,003crore was collected. On average this financial year, the monthly GST collection has been above ₹1.66 lakh crore, mainly because of a buoyant economy and stricter compliance driven by technology, experts said.

FY24 Fiscal Deficit Revised Down To 5.8% Of GDP, FY25 Target At 5.1%, FM says

The FY24 fiscal deficit has been revised down to 5.8 percent of the GDP, Sitharaman said. Revised estimate of revenue receipts expected higher than budgeted, she added. The FY25 fiscal deficit target has been set at 5.1 percent of GDP, Sitharaman said. FY25 gross market borrowing pegged at Rs 14.13 lakh crore, net borrowing at Rs 11.75 lakh crore, she noted. For financial year 2024-25, the tax receipts are estimated at Rs 26.02 lakh crore, she said.

Net Direct Tax Collections increased by 160.52% in last ten years

Central Board of Direct Taxes (CBDT) has released Consolidated Time-Series data as updated upto F.Y. 2022-23. It noted that Net Direct Tax Collections have increased by 160.52% from Rs. 6,38,596 crore in F.Y. 2013-14 to Rs. 16,63,686 crore in F.Y. 2022-23. Gross Direct Tax Collections of Rs. 19,72,248 crore in F.Y. 2022-23 have registered an increase of over 173.31% compared to Gross Direct Tax Collections of Rs. 7,21,604 crore in F.Y. 2013-14. Direct Tax to GDP ratio has increased from 5.62% in F.Y. 2013-14 to 6.11% in F.Y. 2022-23. The Cost of collection has decreased from 0.57% of total collection in the F.Y. 2013-14 to 0.51% of total collection in the F.Y. 2022-23. The total number of ITRs filed in FY 2022-23 stands at 7.78 crore showing an increase of 104.91% as compared to total number of ITRs of 3.80 crore filed in FY 2013-14.

Outlook:

The central government’s external debt ratio continues to remain low and has returned to the pre-pandemic level of 2.7% of gross domestic product (GDP) in FY24, thanks to the reduction in the pace of such loan growth in recent years, Parliament was informed recently. In a written reply in the RajyaSabha, minister of state for finance PankajChaudhary said the Centre’s internal debt ratio has been moderating since hitting 58.3% of GDP in the Covid year of FY21.

India's debt-to-GDP ratio is well below other emerging markets, Finance Minister NirmalaSitharaman said while speaking in the Parliament.Sitharamannoted that the government's handling of the core debt, and the measures towards debt structuring, would keep the situation under control.In the fiscal year ending March 31, 2023, the central government's debt stood at Rs 155.6 trillion, or 57.1 % of the GDP. The debt of state governments stood at 28% of the GDP.

Meanwhile, while maintaining the status quo with respect to direct and indirect taxes, Finance Minister NirmalaSitharaman in her interim budget presentation proposed to withdraw small, non-reconciled and disputed direct tax demands. This implies tax demands of up to Rs25,000 pertaining to the period up to FY 2009-10, and up to Rs10,000 for FY 2011 to 2015 — would be withdrawn. Sitharaman held that that the moves were part of the treasury’s intent to improve ‘ease of living and doing business’.