NEW DELHI: India’s fiscal deficit (gap between expenditure and revenue) during April-December 2020 stood at Rs 11.58 lakh crore, exceeding the Budget target by 145.5%, data released by the Controller General of Accounts showed on Friday.
“The Government of India has received Rs 11,21,678 crore (50% of corresponding BE2020-21 of Total Receipts) up to December, 2020 comprising Rs 9,62,399 crore Tax Revenue (Net to Centre), Rs 1,26,181 crore of Non Tax Revenue and Rs 33,098 crore of Non Debt Capital Receipts,” the finance ministry said.
Of the total Non Debt Capital Receipts, recovery of Loans was Rs 14,202 crore, Disinvestment proceeds stood at Rs 18,896 crore.
According to the data, total expenditure was Rs 22.8 lakh crore, which was 75% of corresponding BE 2020-21, out of which Rs 19,71,173 crore is on Revenue Account and Rs 3,08,974 crore is on Capital Account.
“Out of the Total Revenue Expenditure, Rs 4,72,171 crore is on account of Interest Payments and Rs 2,27,352 crore is on account of major subsidies,” the statement revealed.
For the period under review, Rs 3,71,640 crore has been transferred to state governments as devolution of share of taxes by the Centre up to December 2020. For the current financial year (FY21), the government had pegged the fiscal deficit at Rs 7.96 lakh crore or 3.5% of the GDP in the Budget.
However, on account of Covid-19, and increasing government expenditure, fiscal deficit is projected to overshoot the initial estimates, 3.5% of GDP.
Various analysts and rating agencies have forecasted fiscal deficit between 6.5-8%. Even ahead of Covid, fiscal deficit had soared to a seven-year high of 4.6% of the GDP in 2019-20, mainly due to poor tax collection.
Going by the prescription by the Economic Survey, which calls for a more active, counter-cyclical fiscal policy, the Centre is likely to follow a glide path which will bring down the Budget deficit to 4% of GDP by 2025-26. A counter-cyclical policy is when a government spends more or provides tax relief during a slowdown.
Rs 11.58 Lakh crore Fiscal deficit from April-December 2020.
Rs 11.22 Lakh crore Net receipts, just 50% of Budget estimate.
Expenditure up, collections down