AgenciesCentre’s fiscal deficit for the current year was Rs 14.1 lakh crore at the end of February, 76% of the revised target of Rs 18.5 lakh crore for FY21.
The government had sharply raised the fiscal deficit target for FY22 in the budget presented on February 1, as the Covid-19 pandemic dented revenues and expenditure ballooned to contain its impact.
Originally, fiscal deficit for FY21 was budgeted at Rs 7.96 lakh crore, or 3.5% of GDP. Fiscal deficit is the gap between government’s spending and revenues that is met with borrowings.
February number indicates the deficit would be contained within the targeted Rs 18.5 lakh crore, or 9.5% of GDP.
“We anticipate the GoI's fiscal deficit to trail the FY2021 RE by around Rs. 1.3-1.5 lakh crore, based on our expectation of a modest upside to the tax revenues, and undershooting of its non-interest non-subsidy revenue expenditure,” said Aditi Nayar, principal economist, ICRA, forecasting a fiscal deficit of Rs 17.0-17.2 lakh crore for the year.
Alternatively, the centre has room to give more funds to ministries for capital spending.
The government has set a fiscal deficit target of Rs 15.1 lakh crore in the current fiscal, which is 6.8% of GDP. The government will draw up a new fiscal consolidation roadmap soon.
Total expenditure stood at Rs 28.2 lakh crore at the end of February, representing 82% of the revised expenditure target. Of this, capital spending was Rs 4.05 lakh against the full year target of Rs 4.38 lakh crore.
Total receipts in the first eleven months of the fiscal were Rs 14.1 lakh crore against downward revised target of Rs 16 lakh crore for the full year.
The government had sharply raised the fiscal deficit target for FY22 in the budget presented on February 1, as the Covid-19 pandemic dented revenues and expenditure ballooned to contain its impact.
Originally, fiscal deficit for FY21 was budgeted at Rs 7.96 lakh crore, or 3.5% of GDP. Fiscal deficit is the gap between government’s spending and revenues that is met with borrowings.
February number indicates the deficit would be contained within the targeted Rs 18.5 lakh crore, or 9.5% of GDP.
“We anticipate the GoI's fiscal deficit to trail the FY2021 RE by around Rs. 1.3-1.5 lakh crore, based on our expectation of a modest upside to the tax revenues, and undershooting of its non-interest non-subsidy revenue expenditure,” said Aditi Nayar, principal economist, ICRA, forecasting a fiscal deficit of Rs 17.0-17.2 lakh crore for the year.
Alternatively, the centre has room to give more funds to ministries for capital spending.
The government has set a fiscal deficit target of Rs 15.1 lakh crore in the current fiscal, which is 6.8% of GDP. The government will draw up a new fiscal consolidation roadmap soon.
Total expenditure stood at Rs 28.2 lakh crore at the end of February, representing 82% of the revised expenditure target. Of this, capital spending was Rs 4.05 lakh against the full year target of Rs 4.38 lakh crore.
Total receipts in the first eleven months of the fiscal were Rs 14.1 lakh crore against downward revised target of Rs 16 lakh crore for the full year.
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6 Comments on this Story
 | bodh ramdeo5 hours ago The federal must make enough vaccines available on an emergency footing, so that everyone in every state and territories can get a first dose, which will give them time enough to amass enough doses for the second dose. |
| Arman S10 hours ago Waiting for tai to come and give some new story. |
| Buchiram Suri10 hours ago Before making such comments, please check position of other countries. |