Over-estimation of GDP numbers in Budget disturb fiscal calculations

Tax receipts are expected to fall by Rs 2.5 trillion which may also be caused by the corporation tax and GST rate cuts

fiscal deficit, economy, illustration
Indivjal Dhasmana New Delhi
1 min read Last Updated : Jan 23 2020 | 10:43 PM IST
The Modi government has never gone so wrong in assuming growth in the gross domestic product at current prices in its Budgets than in 2019-20. 

A 4.5 percentage point over-estimation of GDP in the Budget compared to that calculated by advance estimates is one of the major causes of budget numbers going awry this time. Tax receipts are expected to fall by Rs 2.5 trillion which may also be caused by the corporation tax and GST rate cuts. Fiscal deficit even if it is kept at the budgeted level in absolute terms would overshoot the target by one percentage point for the current fiscal year due to overestimation of GDP.


















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Topics :Fiscal DeficitGross Domestic Product (GDP)Budget 2020Gross domestic productFiscal GST rate cutsModi governmentNarendra Modi

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