The union government’s fiscal deficit soared to Rs 12.34 lakh crore or 66.8 percent of the revised budget estimates at the end of January of the current fiscal.
The fiscal deficit at the end of January in the previous financial year was 128.5 percent of the Revised Estimates. In the current fiscal ending March 31, the fiscal deficit is likely to touch Rs 18.48 lakh crore or 9.5 percent of the GDP.
In absolute terms, the fiscal deficit stood at Rs 12,34,004 crore at the end of January 2021, as per the data released by the Controller General of Accounts (CGA). The lockdown imposed to curb the spreading of coronavirus infections had significantly impacted business activities and in turn, contributed to sluggish revenue realisation.
The fiscal deficit or gap between the expenditure and revenue had breached the annual target in the month of July during this financial year. The government received Rs 12.83 lakh crore ( 80 percent of the Revised Estimates 2020-21) up to January 2021.
The tax revenue collection was 82 percent of the RE of 2020-21 as compared to 66.3 percent of the Revised Estimates (2019-20) during the same period last fiscal. Non-tax revenue was 67 percent of the Revised Estimates. During the corresponding period of the last fiscal, it was 73 percent. According to the CGA data, the total expenditure incurred stood at Rs 25.17 lakh crore or 73 percent of the Revised Estimates in the current FY.
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