Share of external financing of fiscal deficit soars to 4.5% in Q1: Report

The share of external financing has jumped to 4.5 per cent in Q1 FY21 from 1.6 per cent in the same quarter last fiscal, which in terms of the quantum has skyrocketed by 325 per cent Y-o-Y, says a report analysing the fiscal numbers of the government.

The government has run 83 per cent of its borrowing target as of June, according to official numbers released on July 31, due to the impact of the pandemic that crippled the economy.

The massive spike in the share of external source of funding the fiscal deficit comes even as it has been continuing financing