India’s Apr 20-Jan 21fiscal deficit hits 66.8% of full-year target

• India’s federal fiscal deficit in the 10 months to end-Jan 21 stood at INR12.34tr (USD167bn), or 66.8% of the revised budgeted target for the whole FY21, government data showed on 26 Feb 21.
• The fiscal deficit at the end of Jan 20 in FY20 was 128.5% of the Revised Estimates (RE).
• Net tax receipts were INR11.02tr, while total expenditure was INR25.17tr, the data showed.
• The tax revenue collection was 82% of the RE of FY21 as compared to 66.3% of the RE in FY20. Non-tax revenue was 67% of the RE in FY21, down from 73% in RE of FY20.
• The fiscal deficit or gap between the expenditure and revenue had breached the annual target in Jul 20.
• According to the CGA data, total expenditure incurred stood at 73% of the RE in FY21. In FY20, it was 84.1% of the RE for the same period.
• For this FY21, the government had initially pegged the fiscal deficit at 3.5% of the GDP in the budget presented in Feb 20.
• However, as per revised estimates in the Budget 2021-22, the fiscal deficit in FY21 is estimated to soar up to 9.5% of the GDP. This will be due to rise in expenditure on account of the outbreak of COVID-19 and moderation in revenue.

External Link : https://www.financialexpress.com/economy/fiscal-deficit-soars-to-rs-12-34-lakh-cr-at-end-of-january/2202709/

External Link : https://www.reuters.com/article/idUSKBN2AQ1EV