Fiscal deficit touches 120% of full-year target as revenues plummet

Experts estimate full year's fiscal deficit between 7 per cent and 9 per cent of GDP against 3.5 per cent estimated earlier by the government

Amid the stressed revenue position and spending pressure to spur economic activity during the pandemic, the fiscal deficit touched 120 per cent of the full year’s budget estimates (BE) in the first seven months of fiscal year 2020-21. However, tax revenue revived during the festive season and capital spending also saw a sharp upswing in October.
 

Fiscal deficit in the first half of the fiscal year touched 10.71 per cent of gross domestic product (GDP), based on the second quarter national accounts data released by the National Statistical Office.
 

Experts estimate full year's fiscal deficit between 7 per cent and