The fiscal deficit for the first half of the current fiscal year (April to September) remained well below the five-year moving average, reflecting fiscal inflation observed during the period, according to data provided by the Treasury Department.

In the statement on the semi-annual review of fiscal year 2022-23 revenue and expenditure trends released by the Economy Ministry, the ministry said: “The budget deficit in the first half of fiscal year 2022-23 was about 6.20 lakhcrore, stood at about 37.3 % of budget estimate (BE) 2022-23 and well below the five-year rolling average of 85.8%.”

The performance was aided by tax boosts in the economy. “Gross tax revenue and tax revenue (net to centre) through September 2022 were 13.92 lakh crore (50.5% of BE) and 10.12 lakh crore (52.3% of BE) respectively compared to 11.84 lakh crore ( 53.4%). of BE) and ₹9.21 lakh crore (59.6% of BE) in the first half of the 2021-22 financial year,” reads the report.

In the first half of the current fiscal year, tax receipts (net to mid) came in at 52.3% of the budgeted amount, well above the past five-year moving average of 41.6% of the budgeted budget, according to the report.

“Tax Free Revenue (NTR) for the first half of FY2022-23 at 58.4% of BE 2022-23 (1.58 lakhcrore) was also well above the last five year moving average of about 45.8% of BE . revenue [Tax Revenue (Net to Centre) and NTR] the government in the first half of the 2022-23 financial year at about ₹11.70 lakhcrore was 53.1% of BE. This was significantly higher than BE’s five-year moving average of 42.1%. In the first half of fiscal 2022-23, direct taxes and indirect taxes recorded growth of 23.2% and 11.9 percent, respectively, compared to the first half of fiscal 2021-22,” the report said.

On the expenditure side, total expenditure (revenue expenditure and capital expenditure) in the first half of fiscal 2022-23 was about 18.24 lakhcrore, 46.2% of the budget estimate, according to the ministry. “Turnover expenditure was approximately £14.81 billion and capital expenditure was approximately £3.43 billion in the first half of FY2022-23, up 49.5% from £2.29 billion in the first half of FY2021 -22. The trend was consistent with the government’s focus on investing in infrastructure development with a historic push on capital spending and a streamlining of revenue spending,” the report said.

The ministry also said in the report that the government is committed to strong macroeconomic fundamentals and financial stability. “The current global economy is navigating incredibly rough waters due to global uncertainties, the unfolding conflict in Ukraine, the financial and commodity markets’ response to the changing scenarios and tight monetary policies, etc. However, despite all the hurdles, the Indian economy has performed fairly well compared to other major economies and has demonstrated its resilience amid the global slowdown and uncertainties. The Indian government remains committed to strong macroeconomic fundamentals and financial stability,” she added.