Fiscal deficit may hit 8% of FY21 GDP on additional govt borrowing: Experts

The development comes at a time when the economy is limping back to normalcy after a stringent lockdown that lasted over two months

The government’s already strained finances and handling of the economy which has been dented by the Covid-19 pandemic will be put to test as it tries to secure Parliament’s nod for an additional Rs 1.67 trillion for fiscal 2020-21. The money will be used to recapitalise state-owned banks, fight Covid-19 pandemic and fund various schemes announced for vulnerable sections.

 

“The extent to which savings can be found vide the expenditure management measures that were put in place, will contribute to determining the eventual fiscal outcome for FY21