Government met the fiscal deficit target of 3.4% for FY 2018-19

Government has met the fiscal deficit target of 3.4% for the Financial Year 2018-19. The fiscal deficit stood at 3.39% against the estimated rate of 3.4%. The data was released by the Controller General of Accounts (CGA). It was met through reduction in government spending, which also contributed to GDP growth slowing to 5.8% in fourth quarter of FY19.

Key Points:

• For FY19, the fiscal deficit stood at Rs 6.45 trillion(Lakh crore), slightly above than the revised estimate of Rs 6.34 trillion.
• The fiscal deficit target was revised to 3.4% of GDP from 3.3% in the interim budget by the government.
• The expenditure of the government was Rs 23.11 lakh crore, nearly Rs 1.5 lakh crore less than the total revised budget size of Rs 24.57 lakh crore.
• The fiscal deficit data for April 2019, stood at Rs 1.57 trillion (22.3% of the full year target) compared to 24.3 % for the same period last fiscal year.
• The revenue deficit for the entire FY19 was 108.2% of the full year target, compared to 102% for FY18. It excluded capital expenditure and capital receipts of the government.
• Total revenue for FY19 was Rs 16.66 trillion, about Rs 1.57 trillion less than the revised estimates of Rs 18.23 trillion. Net tax revenue for FY19 was at 88.7% of the revised full year target, compared to 97.9% for the same period last year. Non-tax revenue slightly exceeded the full year target, compared to 79.6% last year.
• Revenue expenditure was 93.8% of the full year target, compared to 96.6% for FY18. Capital expenditure for the same period was 95.9% of the full year target, compared to 96.2% last year.

About CGA:

The information regarding accounts of the union government is released by the Controller General of Accounts (CGA). Its statutory mandate (duties and functions) have been defined in the Allocation of Business Rules, 1961. It works under the Ministry of Finance, Government of India.