India’s fiscal deficit at the end of November amounts to 135.1% of the FY21 target

The Union government’s fiscal deficit rose to 10.75 lakhs, or 135.1 percent of the 2020-21 (BE) budget estimates, at the end of November 2020, mainly due to reduced revenue generation due to the interruption of trade activities. coronavirus pandemic.

The fiscal deficit at the end of November 2019 stood at 114.8% of 2019-20 BE.

In absolute terms, the fiscal deficit amounted to 10.75.507 million at the end of November 2020, according to the latest data published by the Comptroller General (CGA).

The blockade imposed to reduce the spread of coronavirus has had a significant impact on business activities and, in turn, has contributed to slow revenue growth.

The fiscal deficit, or the gap between expenditure and revenue, breached the annual target in July this year.

Total government revenues amounted to Rs 8,30,851 (37% of BE 2020-21) by the end of November 2020. These included tax revenues of Rs 6,888,430 (net to center), Rs 1,24,280 – income from taxes and 18,141 billion lei of undue capital receipts. Undue receivables consist of loan recovery and divestment proceeds.

The collection of tax revenues was 42.1% of the BE from 2020-21, compared to 45.5% of the BE (2019-20) in the corresponding period a year ago. Non-tax revenues were 32.3% of BE. In the corresponding period of the last fiscal year, it was 74.3% of BE 2019-20.

In the last corresponding fiscal period, the total revenues were of 48.6% from 2019-20 BE.

According to the data, over £ 3.34 million has been transferred to state governments as a transfer of the share of taxes by the Government of India by November 2020.

The CGA data said that the total expenses borne by the government amounted to 19.06.358 crore or 63 percent of BE. Of the total expenses, Rs 16,65,200 were on the income account and Rs 2,41,158 on the capital account.

In addition, he stated that out of total revenue expenditure, more than 3.83 lakhs were due to interest payments and 2.02.119 billion to major subsidies.

For this financial year, the government has set the fiscal deficit at 7.96 lakhs or 3.5% of GDP in the Union budget, which was presented by Finance Minister Nirmala Sitharaman in February 2020. These figures, however, should be significantly revised in view of the economic disruptions created by the coronavirus pandemic.

The fiscal deficit increased to a seven-year high of 4.6 percent of gross domestic product in 2019-20, mainly due to poor revenue growth.

Source