You are here: Home » Economy & Policy » News
Business Standard

Fiscal deficit hits Rs 12.34 trillion at end of January, shows data

The fiscal deficit at the end of January in the previous financial year was 128.5 per cent of the Revised Estimates (RE)

Topics
Fiscal Deficit | Indian Economy | Gross domestic product

Press Trust of India  |  New Delhi 

fiscal deficit, fiscal, budget target, fiscal target, fiscal
The fiscal deficit, or gap between the expenditure and revenue, had breached the annual target in the month of July during this financial year

The central government’s soared to Rs 12.34 trillion, or 66.8 per cent, of the Revised at the end of January of the current fiscal year, according to the data released by the Controller General of Accounts (CGA).

The at the end of January in the previous financial year was 128.5 per cent of the Revised Estimates (RE). In the current fiscal ending March 31, the is likely to touch Rs 18.48 trillion, or 9.5 per cent, of the (GDP). The lockdown imposed to curb the spread of coronavirus infections had significantly impacted business activities and in turn, contributed to sluggish revenue realisation.

The fiscal deficit, or gap between the expenditure and revenue, had breached the annual target in the month of July during this financial year. The government received Rs 12.83 trillion — 80 per cent of the RE 2020-21 — up to January, 2021. This included Rs 11.01 trillion of tax revenue.

ALSO READ: India's core industries output sees marginal 0.1% rise in January

The tax revenue collection was 82 per cent of the RE of 2020-21, as compared to 66.3 per cent of the RE (2019-20) during the same period last fiscal. Non-tax revenue was 67 per cent of the RE. During the corresponding period of the last fiscal, it was 73 per cent.


chart

According to the CGA data, total expenditure incurred stood at Rs 25.17 trillion, or 73 per cent of the RE in the current fiscal year.

Last fiscal, it was 84.1 per cent of the RE during the same period.

For this financial year, the government had initially pegged the fiscal deficit at Rs 7.96 trillion, or 3.5 per cent of the GDP, in the Budget presented in February 2020.

However, according to Eevised Estimates in Budget 2021-22, the fiscal deficit in the year ending March is estimated to soar up to 9.5 per cent of the GDP, or Rs 1,848,655 crore. This will be because of rise in expenditure on account of the outbreak of Covid-19 and moderation in revenue.

Fiscal deficit had soared to a seven-year high of 4.6 per cent of the in 2019-20, mainly because of poor revenue realisation.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 27 2021. 02:21 IST
RECOMMENDED FOR YOU
.