Fiscal deficit touches 58.6% in two months

Fiscal deficit touches 58.6% in two months

Photo for representational purpose only

New Delhi, June 30

The fiscal deficit during the first two months of the current financial year widened to Rs 4.66 lakh crore or 58.6% of the Budget estimates mainly on account of poor tax collection due to the lockdown to check the spread of coronavirus.

Widens to Rs 4.66 L cr

  • The government had pegged the fiscal deficit for FY21 at Rs7.96 lakh crore or 3.5% of the GDP in the Budget
  • In absolute terms, the fiscal deficit stood at Rs4,66,343 crore at end-May, the Controller General of Accounts data showed

.

The fiscal deficit during the corresponding period of last year was be 52% of the Budget estimates.

The government had pegged the fiscal deficit for 2020-21 at Rs 7.96 lakh crore or 3.5% of the GDP in the Budget which was presented by Finance Minister Nirmala Sitharaman in February.

These figures, however, have to be revised significantly in view of the economic disruptions created by the outbreak of the coronavirus.

In absolute terms, the fiscal deficit stood at Rs 4,66,343 crore at end-May, the Controller General of Accounts (CGA) data showed.

The deficit was 35.1% of BE at end-April.

Fiscal deficit had soared to a seven-year high of 4.6% of the GDP in 2019-20, mainly on account of poor revenue realisation which dipped further towards the close of March because of lockdown to contain spread of coronavirus.— PTI

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