Revenue stress: Fiscal deficit in first half soars to 115% of target

Gap between revenue, expenditure at Rs 9.13 trn, against Rs 7.9 trn estimated in Budget for full year

Facing severe revenue stress because of muted economic activity during the Covid-19 pandemic, the Union government’s fiscal deficit soared to 115 per cent of the full Budget estimates in the first half of 2020-21.

The gap between the Centre’s revenue and expenditure touched Rs 9.13 trillion between April and September, the government data showed. During the same period last year, the fiscal deficit stood at 92.6 per cent of the Budget target. The fiscal deficit had breached the Budget target in July itself as the economy faced the most stringent lockdown in the first quarter.

A fiscal deficit arises when government spending