Public finances in a big mess in India?
Controller General of Accounts finds widening gap between receipts and expenditure under various heads as well as fiscal, revenue, and primary deficits
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New Delhi: Data released by the Controller General of Accounts (CGA) till the end of October has painted a grim picture of public finances, showing a decline in receipts and a rise in expenditure under various heads as well as fiscal, revenue, and primary deficits, as compared to the last year.
The CGA is the Principal Advisor on accounting matters to the Union government, responsible for establishing and managing a technically sound management accounting system, preparing the accounts of the government, and exchequer control and internal audits.
Total receipts till the end of October were Rs1,385,574, against the Budgetary estimates of Rs 2,283,713 crore. This is 60.7 per cent of the Budgetary estimates. In the corresponding period of the previous year (COPPY), the receipts were 64.7 per cent of the Budgetary estimates.
The tax revenue collection reflects a similar story, the corresponding numbers being Rs 1,171,103 crore, Rs1,934,771 crore, 60.5 per cent and 68.1 per cent. Ditto with non-tax revenue receipts: Rs178,779 crore, Rs269651 crore, 66.3 per cent, and 85.1 per cent. Non-debt capital receipts, however, have shown an upward trend. There was a collection of Rs35,692 crore against the Budgetary estimates of Rs79,291 crore for the entire fiscal. This was 45 per cent of the Budgetary estimates, whereas COPPY was 10.5 per cent.
This was primarily on account of disinvestment. Government equity worth Rs24,559.93 crore in public-sector enterprises has been sold, whereas the 2022-23 target is Rs65,000 crore. That is, 38 per cent of the target has been achieved. It was 12 per cent. It must, however, be remembered that most of the money from disinvestment came from the sale of 3.5 per cent stake in LIC.
Revenue expenditure till October-end was Rs 1,734,697 crore, against the Budgetary estimates of Rs 3,195,257. This is 54.3 per cent of the Budgetary estimates, against COPPY of 53.7 per cent.
Given the government's focus on infrastructure development, capital expenditure shows much higher rise, though this should be the least of concerns. Till October-end, Rs 409,014 crore was spent against the Budgetary estimates of Rs 749,652 crore. This is 54.6 of Budgetary estimates, against 45.7 per cent COPPY.
All the deficits are worrisome. The fiscal deficit till October-end was 45.6 of the Budgetary estimates, whereas the COPPY was 36.3 per cent. The corresponding numbers for the revenue deficit are 38.8 per cent and 27.5 per cent. The corresponding numbers for the primary deficit 38.4 per cent and 20.9 per cent.
