Fiscal deficit budget estimate of 3.5 percent
Budget estimate for fiscal deficit has been kept at 3.5 per cent in the current financial year. In this context, the fiscal deficit is likely to be 100 per cent higher than the budget estimate. Finance Minister Nirmala Sitharaman had estimated the fiscal deficit to be Rs 7.96 lakh crore or 3.5 percent of GDP in the 2020-21 general budget. Similarly, in the budget, the Gross Market Borrowing was estimated to be 7.80 lakh crore rupees. The government, which was facing shortage of funds in the midst of the Kovid-19 crisis, had increased its market lending program by more than 50 percent to Rs 12 lakh crore for the current fiscal year.
Fiscal deficit estimated at Rs 14.5 lakh crore: Aditi NairICRA chief economist Aditi Nair said that the fiscal deficit is expected to reach 7.5 per cent in the financial year ending in March. He said, “We estimate the fiscal deficit to be Rs 14.5 lakh crore or 7.5 per cent of GDP.”
He said that the gross domestic product at current prices is estimated to be Rs 194.82 lakh crore in 2020-21. At the same time, the initial estimate of GDP released for the financial year 2019-20 on 31 May 2020 was Rs 203.40 lakh crore.
Fiscal deficit estimates over Rs 12 lakh crore: DK Srivastava
DK Srivastava, Chief Policy Advisor, EY India, said that the central government may face a fiscal deficit of more than Rs 12 lakh crore declared earlier this year.
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The fiscal deficit of the Center has reached Rs 10.7 lakh crore during the first eight months (April-November) of the current financial year, which is 135 per cent of the full year’s budget estimate. The fiscal deficit crossed the budget target in July due to the lockdown imposed to curb the Kovid-19 epidemic.
At the end of November 2020, the government’s total receipts were Rs 8,30,851 crore. This is 37 percent of the budget estimate for 2020-21. This includes tax revenue of Rs 6,88,430 crore, non-tax revenue of Rs 1,24,280 crore and non-debt capital receipts of Rs 18,141 crore.