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Spending more than income is something any individual, firm or country would want to avoid, but in reality expenditure by governments exceeds revenues while financing growth. A fiscal deficit is the difference between the earnings and the expenses of a country, and is the opposite of a budget surplus, which countries achieve by collecting more than they spend. In case of India, the fiscal deficit further increased to Rs 11.91 lakh crore in 10 months of FY23, which is 67.8 per cent of the Rs 17.55 lakh crore limit set by the government.
This is a jump for the fiscal deficit from the same period in FY22, when the difference between expenses and income had hit 58.9 per cent of the target. The surge comes despite a revision of the upper limit for the fiscal deficit from Rs 16.61 lakh crore to Rs 17.55 lakh crore.
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