The Centre is expected to achieve the FY23 fiscal deficit target of 6.4% of gross domestic product (GDP) despite a downward revision in national income from the budgeted levels, said a person aware of the details.
The actual FY23 fiscal deficit, in absolute terms, will likely be slightly lower than the revised estimate (RE) of ₹17.55 lakh crore, he said.
“The nominal GDP for FY23 was marginally revised down in the second advance estimate. But that shouldn’t be a problem now, as the fiscal deficit in absolute terms may also drop a bit from the RE,” he said.
The fiscal deficit numbers for FY23 will be formally released by the government at the end of May.
The second advance estimate for FY23 released on February 28 pegged nominal GDP at ₹272 lakh crore, lower than budgeted ₹273.1 lakh crore.
The provisional estimate of the full-year (FY23) GDP will be announced on May 31.
The Centre’s net tax collection in FY23 could be a tad higher than the revised estimate, while expenditure would be marginally lower than the RE, he added.