Revenue to disinvestment: Govt short of finances as it tries to fix economy

The govt's net revenue in the April-July period of 2020 contracted 42%, as its overall expenditure growth was kept at 11%. A K Bhattacharya explains the government's challenges in fixing the economy

Topics
Indian Economy | Coronavirus | Revenue

A K Bhattacharya  |  New Delhi 

A K Bhattacharya

How serious is the stress in the Union government’s finances and are there any signs that they may be on the mend? The questions may appear to be odd and even counterfactual at a time when the latest numbers on the government’s fiscal deficit for the April-July 2020 period have exceeded the annual Budget target by 3 per cent. In April-June 2020, the fiscal deficit had already risen to about 83 per cent of the target for the full year.

Nevertheless, the questions still deserve to be asked. The figures on government finances are based on monthly reports released by the ...
First Published: Thu, September 10 2020. 11:32 IST