Govt ‘well on track’ to meet FY23 fiscal deficit aim despite extra pressures, says Economic Survey

According to the Survey, the government was prudent in keeping conservative assumptions of macroeconomic variables in the Union Budget for FY23, as it provided a buffer during a year replete with global uncertainties.

Written by Sukalp Sharma

New Delhi | January 31, 2023 05:11 PM IST

2 min read

The budget estimate for the current financial year's fiscal deficit stands at Rs 16.61 lakh crore, or 6.4 per cent of the GDP.

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The Economic Survey for 2022-23 sees the government “well on track” to achieve the current financial year’s budget estimate for fiscal deficit despite “additional fiscal resource pressures” during the year. These fiscal resource pressures refer to the additional spending on food and fertiliser subsidies, and duty cuts—like on fuel—to cushion the impact of high import prices on Indian consumers.

The budget estimate for the current financial year’s fiscal deficit stands at Rs 16.61 lakh crore, or 6.4 per cent of the GDP. For April-November, it was Rs 9.78 lakh crore, or 58.9 per cent of the budget estimate, which was lower than the five-year moving average of 104.6 per cent for the same period. For the year-ago period, it was 46.2 per cent.

Conservative Assumptions

“The Union Budget for FY23 was presented in a recovering yet uncertain macroeconomic environment, not anticipating the geopolitical developments that unfolded during the year. As the conflict in Europe broke out early in the year, it aggravated supply disruptions and had an adverse impact on the prices of fuel, food, and other essential commodities,” the Survey said.

“This resilience in the fiscal performance of the Centre has resulted due to a recovery in economic activity, buoyancy in revenues observed during the year, and conservative assumptions of macroeconomic variables in the Budget,” the Survey said.

Revenue receipts

For April-November, revenue receipts stood at Rs 14.23 lakh crore, or 64.6 per cent of the budget estimate. At Rs 17.81 lakh crore, gross tax revenue was also at 64.6 per cent of the budget estimate. Total expenditure for April-November was Rs 24.43 lakh crore, or 61.9 per cent of the budget estimate. Of this, revenue expenditure was Rs 19.96 lakh crore, while capital expenditure was Rs 4.47 lakh crore.

Sukalp Sharma

Sukalp Sharma is a Senior Assistant Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 13 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy. He considers himself an above-average photographer, which goes well with his love for travel. ... Read More

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Economic Survey