India's fiscal deficit at 9.3% of GDP in 2020-21: Official data

01 Jun '21

1 min read

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Compared to 9.5 per cent fiscal deficit projected in the revised estimates in the Union Budget this February, India's fiscal deficit for 2020-21 stood at 9.3 per cent of the Gross Domestic Product (GDP). The high fiscal deficit last financial year was mainly due to the COVID-19 pandemic as well as subsequent lockdowns to curb the spread of infections.

In absolute terms, the fiscal deficit works out to be ₹18,21,461 crore (provisional), the revenue-expenditure data of the Union government released by the Controller General of Accounts (CGA) showed.

As per the CGA data for fiscal 2020-21, revenue deficit at the end of the year was 7.42 per cent.

For 2020-21, the government had initially pegged the fiscal deficit at ₹7.96 lakh crore or 3.5 per cent of the GDP. However, this was revised in the Budget 2021-22, to 9.5 per cent of the GDP or ₹18,48,655 crore due to rise in expenditure and moderation in revenue amid the pandemic.

For the current fiscal beginning April 1, 2021, the government expects the fiscal deficit to be at 6.8 per cent of the GDP or ₹15,06,812 crore.

ALCHEMPro News Desk (RKS)

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