By ending July 2020, the fiscal deficit stood at Rs8.21 lakh cr ($111.7B) which is about103.1% of the budgeted target for the current fiscal year. This is also higher compared to a year ago same period, where the fiscal deficit just accounted for 79% of the budgeted target in that financial year.
The government had set a fiscal deficit target of Rs7.96 lakh cr for FY21 during the Union Budget 2020-21. This accounts for 3.5% of the gross domestic product (GDP).
Data given by the Centre showed that India’s net tax receipts were Rs2.03 lakh cr, on the other hand, total expenditure was at Rs10.5 lakh cr. Such indicates the spending was higher compared to earnings due to Covid-19 pandemic.
The country’s GDP has contracted 23.9% during April – June 2020 (Q1FY21) quarter compared to 5.2% growth in Q1 2019-20. GDP at constant (2011-12) prices in Q1FY21 was estimated at Rs26.90 lakh cr against Rs35.35 lakh cr a year ago same period.
