India’s Fiscal Deficit Reaches ₹7.02 Lakh Crore in H1 FY24; Targets Remain Challenging

H1 FY24

October 31, 2023

New Delhi, India

India’s Fiscal Performance in H1 FY24: A Close Look

India’s fiscal deficit stood at ₹7.02 lakh crore in the first half (April-September) of the financial year 2023-24, comprising 39.3% of the estimated deficit for the entire fiscal year, as per official data released recently.

Fiscal Targets and Government’s Aims:

The government aims to cap the fiscal deficit at 6.4% of the GDP, striving for a reduction from the previous year’s figure of 6.71%. In the Union Budget, an ambitious goal to bring down the fiscal deficit to 5.9% of the GDP was set for the current financial year.

Revenue and Expenditure Dynamics:

Tax revenue reached ₹11.60 lakh crore, representing 49.8% of the annual target in the specified period. However, this fell slightly behind the previous year’s performance by the same period.
On the other hand, the central government’s total expenditure in the initial half of the fiscal year amounted to ₹21.19 lakh crore, marking 47.1% of the Budget Estimates for the year. This figure is marginally higher than the corresponding period in the previous fiscal year.

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Interpretation and Implications:

The current fiscal deficit status at 39.3% of the annual projection signals potential challenges in managing government borrowings within the set targets.
While revenue collection remains significant, it displays a slight lag compared to the previous year, while expenditure seems marginally higher.

Challenges and Strategies Ahead:

The data underscores the need for cautious fiscal management to meet the deficit reduction targets set by the government.
Efforts to trim the fiscal deficit as a percentage of the GDP indicate a commitment to maintaining economic stability and curbing borrowings.


The fiscal situation’s analysis highlights challenges in achieving deficit targets. It emphasizes the significance of prudent fiscal policies and effective strategies to bolster revenue while managing government spending.