Sensex opens above 40,000, April-Sep fiscal deficit at 92.6% of budgetary target

Sensex equity Nifty

Mumbai, Nov 1 Sensex opened above the 40,000 marks with marginal gain on Friday. India’s budgetary fiscal deficit for the April-September period came in at 92.6 per cent, or Rs 6.51 lakh crore, of the budget estimates (BE), official data showed on Thursday.

At 9.46 a.m., the Sensex was up 39.82 points at 40,168.87 while the Nifty was trading 10 points higher at 11,887.45.

The Sensex opened at 40,196.07 on Friday from its previous close of 40,129.05.

The government has targeted the fiscal deficit to be at Rs 7.03 lakh crore for 2019-20.

According to the Controller General of Accounts (CGA) data, the fiscal deficit during the corresponding months of the previous fiscal was 95.3 per cent of that year’s target.

The Central government’s total expenditure stood at Rs 14.88 lakh crore (53.4 per cent of BE) while total receipts were Rs 8.37 lakh crore (40.2 per cent of BE).

Besides, the total expenditure for the period under review comprised Rs 13.01 lakh crore on the revenue account, while Rs 1.87 lakh crore was on capital expenditure.

Total receipts comprised Rs 8.16 lakh crore of net tax revenue and Rs 20,598 crore of non-tax revenue receipts.

“With a subdued growth of tax revenues, the government of India’s fiscal deficit rose by a substantial 92.6 per cent to Rs 6.1 trillion in H1 FY2020, and stood at a considerable 93 per cent of the full year budget estimates,” said Aditi Nayar, Principal Economist, ICRA.

“The transfer of funds from the RBI has cushioned the impact of the muted 4 per cent growth in the government of India’s net tax revenues, and helped its overall revenue receipts to expand by a healthy 18 per cent in H1 FY2020,” Nayar added.

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