Centre’s fiscal deficit at 11.8% of target at May­ end: CGA

Centre’s fiscal deficit at 11.8% of target at May­ end: CGA

Subject : Economy

Section: Fiscal Policy

Concept :

• The central government’s fiscal deficit stood at Rs 2.1 lakh crore or 11.8 per cent of the full-year budget estimates at May-end 2023, according to official data.
• The fiscal deficit was 12.3 per cent of 2022-23 budget estimates a year ago.
• Fiscal deficit is the difference between the total expenditure and revenue of the government. It is an indication of the total borrowings that are needed by the government.
• In actual terms, the deficit was Rs 2,10,287 crore at May-end 2023, as per the data of the Controller General of Accounts (CGA).

Budget Estimates

• In the Union Budget, the government aimed to bring down the fiscal deficit during the current financial year 2023-24 to 5.9 per cent of the gross domestic product (GDP).
• The deficit was 6.4 per cent of the GDP in 2022-23 against the earlier estimate of 6.71 per cent.
• Unveiling the revenue-expenditure data of the Union government for the first two months of 2023-24, CGA said the net tax revenue was Rs 2.78 lakh crore or 11.9 per cent of the BE.
• Its total expenditure was Rs 6.25 lakh crore or 13.9 per cent of the estimates presented in the Union Budget for the current fiscal.

About Controller General of Accounts:

• Controller General of Accounts (CGA), in the Department of Expenditure, Ministry of Finance, is the Principal Accounting Adviser to Government of India.
• It is responsible for establishing and maintaining a technically sound Management Accounting System.
• The goal is to provide reliable information that brings transparency in the use and reporting of public funds through an integrated government-wide financial information system.
• Accordingly the focus has been on providing client oriented, integrated applications that aim at achieving operational efficiency across streams of public financial management system.

Function:

• The Office of CGA prepares monthly and annual analysis of expenditure, revenues, borrowings and various fiscal indicators for the Union Government.
• The Annual Appropriation Accounts (Civil) and Union Finance Accounts are submitted to Parliament under Article 150 of the Constitution. Along with these documents, an M.I.S Report titled ‘Accounts at a Glance’ is prepared and circulated to Hon’ble Members of Parliament.

Mandate:

• Controller General of Accounts derives his mandate from Article 150 of the Constitution
• This statutory mandate as incorporated in the Allocation of Business Rules 1961 brings out the duties and responsibilities of CGA as below:
• General principles of Government accounting relating to Union or State Governments and form of accounts, and framing or revision of rules and manuals relating thereto;
• Reconciliation of cash balance of Union Government with Reserve Bank in general and, in particular, of Reserve Deposits pertaining to Civil Ministries or Departments;
• Overseeing the maintenance of adequate standards of accounting by Central Civil Accounts Offices;
• Consolidation of monthly accounts, preparation of review of trends of revenue realization and significant features of expenditure etc and preparation of annual accounts (including Summary, Civil Appropriation Accounts) showing under the respective heads, the annual receipts and disbursements for the purpose of the Union Government;
• Administration of Central Treasury Rules and Central Government Account (Receipt and Payment Rules 1983);
• Coordination and assistance in the introduction of management accounting system in Civil Ministries or Departments;
• Cadre management of Group ‘A’ (Indian Civil Accounts Service) and Group ‘B’ Officers of the Central Civil Accounts Offices;
• Matters relating to the Central Civil Accounts staff belonging to Group ‘C’ and ‘D’;
• Disbursement of Pension through Public Sector Banks (PSBs) in respect of Central Civil Pensioners, Freedom Fighters, High Court Judges, Ex-M.P.s and Ex-Presidents.