Budget: Govt pegs FY21 fiscal deficit at 9.5%; sets target at 6.8% for FY22

In FY21, the gap between revenue and expenditure reached Rs 18.48 trillion in the revised estimate. For FY22, the gap is expected to be Rs 15 trillion

The Centre’s fiscal deficit for the current financial year has breached all the previous estimates, and is now pegged at 9.5 per cent of the gross domestic product (GDP), compared to the budgeted estimate of 3.5 per cent.

The overhaul in the fiscal roadmap has come amidst contracting growth, weak revenue inflow and a series of medium-sized stimulus packages announced by the Narendra Modi-led government during the pandemic.

For financial year 2022, the Centre is targeting a fiscal deficit of 6.8 per cent, to be gradually brought down to below 4.5 per cent in the next four fiscal (by FY26).