Business Standard

Nirmala Sitharaman's Budget again reveals structural fiscal constraint

It recognises it cannot afford space for expansionary fiscal policy

fiscal deficit, economy, illustration

Rathin Roy
In my column on the FY20 Budget (A silent fiscal crisis, July 5, 2019), I had warned that the government faced a structural fiscal constraint that was concealed by using incorrectly optimistic numbers for revenue receipts. This year’s Budget is transparent. But the government continues to be heavily fiscally constrained due to inadequate revenue receipts. A large part of the incremental fiscal deficit is because of this constraint. 

In FY20, gross tax revenue receipts are Rs 3 trillion lower than projected in the budget estimates. Half of this is because of a shortfall in corporate taxes, which is
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 01 2020 | 9:51 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to