Categories: Business

India April July fiscal deficit at 8.21 lakh crore


Fiscal deficit over the full year target in 4 months

new Delhi. The fiscal deficit of the central government has exceeded the full year's budget estimate in the first four months (April-July) of the financial year due to weak revenue collection due to lockdown. According to the data released by the Comptroller and Auditor General (CGA), the fiscal deficit for the current financial year from April to July reached 103.1 per cent, or Rs 8,21,349 crore, as compared to its annual estimate. It was 77.8 percent of the annual budget estimate during the same four months a year ago. A government's fiscal deficit is the difference between its total spending and revenue. It surpassed the annual target in October last year. In the Budget 2020-2021 presented by Finance Minister Nirmala Sitharaman, the fiscal deficit was estimated to be Rs 7.96 lakh crore i.e. 3.5 percent of the gross domestic product (GDP).

These figures had to be revised in view of the situation arising from the outbreak of the corona virus epidemic. The lockdown enforced by the Korana virus caused considerable disruption in economic activity. The central government implemented a lockdown across the country from 25 March 2020 to curb the spread of Kovid-19. After this, the lockdown gradually began to be relaxed from May. In the last fiscal year 2019-20, the fiscal deficit reached a seven-year high of 4.6 percent against the country's gross domestic product (GDP). Revenue receipts were weak during the year, which weakened further by March. The revenue receipts of the government stood at Rs 2,27,402 crore during the first four months of the current financial year, according to data from the Comptroller and Auditor General. This amount is 11.3 percent of the annual target of the budget of the year. In the same period last year, total revenue receipts were 19.5 percent of the budget estimate. Tax revenue during April to July stood at Rs 2,02,788 crore, or 12.4 percent of the budget estimate, as compared to 20.5 percent of the budget estimate a year ago.

This post was published on August 31, 2020 7:46 pm

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