Fiscal deficit to shoot up to 7.6% in FY21; twice budget estimate: Ind-Ra

Ind-Ra said India's gross domestic product (GDP) will contract by 5.3 per cent, while states like Assam, Goa, Gujarat and Sikkim are expected to witness a double-digit contraction

The Centre's fiscal deficit is expected to touch 7.6 per cent in 2020-21, more than double the Budget Estimate, as the country spends extra to minimise the impact of the Covid-19 pandemic while facing a shortfall in revenues, a report said on Friday.

At a combined level, the fiscal deficit of the Centre and states together will come at 12.1 per cent, with the states contributing 4.5 per cent, India Ratings and Research said in the report. It also said the government has already announced a stimulus package damaging the fiscal math by 1.1 per cent.

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