Fiscal deficit expected to follow previous years' trend in June quarter

Centre's capex outlay may touch 20 per cent of full-year target in Q1 at Rs 1.5 trillion

The Controller General of Accounts is expected to release the fiscal deficit data for the first quarter of financial year 2022-23 (Q1FY23) on Friday. The revenue, expenditure and fiscal deficit data are expected to be in line with previous years’ trends (as a percentage of full-year targets), due to what officials, including Union Finance Minister Nirmala Sitharaman, have termed "first quarter lethargy."

It is in Q2 that outlays are expected to pick up, especially on capital expenditure (capex), as Rs 1 trillion in long-term capex loans to states are expected to be disbursed.

The fiscal deficit for April-May FY23 was