Fiscal deficit for 2023-24 likely to beat projections: Report

India's fiscal deficit for the fiscal year ending March 2024 is expected to outperform the government's initial projection of Rs 17.35 lakh crore, according to a government source.

The source, who preferred to remain anonymous, disclosed that "extra tax receipts and some non-tax revenues" have contributed to this improvement in the fiscal deficit outlook. The official made these remarks to reporters in New Delhi.

The official announcement regarding fiscal deficit for the 2023-24 financial year is scheduled for May 31.

Income tax receipts surged by 17.7 per cent year-on-year to nearly $235 billion in 2023-24, surpassing the government's expectations.

The government has targeted a fiscal deficit of 5.8 per cent of GDP for the mentioned financial year. However, the official did not provide specific details regarding whether the fiscal deficit as a percentage of GDP would also fall below the target.

Despite the ongoing elections, government’s spending plans for April-June remain unaffected, as indicated by the source. However, further details regarding this assertion were not provided.

Additionally, the government will assess the necessity for another round of buying back government securities, following the central bank's recent acceptance of offers to purchase government bonds worth Rs 10,510 crore at an auction on Thursday, against the notified amount of Rs 40,000 crore.

(With Reuters inputs)