Fiscal deficit to touch 7% in FY21 as Covid hits revenue: Brickwork Ratings

Revenue from income taxes (personal income tax and corporate income taxes) was lower by 30.5 per cent, and the GST by almost 34 per cent during the period

India's fiscal deficit is expected to touch 7 per cent of GDP in 2020-21 fiscal as against budget estimate of 3.5 per cent, with revenue collections being hit amid disruptions in economic activities due to lockdowns, according to Brickwork Ratings.

"The impact of the lockdown on economic activity shows up starkly in the trends in the central government revenue collection during the first three months of fiscal 2020-21," the agency said in a report.

As per data released by the Controller General of Accounts (CGA), the central government's revenue in Q1 (April-June) of the current fiscal year is much lower than collections