RBI’s surplus transfer of Rs 99,122 crore in June this year has also boosted the government’s total revenue receipt during the April-July period.
The deficit figures this fiscal appear much better than the previous financial year, when it soared to 103.1 per cent of the estimate, mainly on account of a jump in expenditure.
Touches Rs 2.74 lakh crore in Q1; government confident to meet the target of 6.8%
The fiscal deficit at the end of June 2020 was 83.2 per cent of the Budget Estimates (BE) of 2020-21.
Tiwari said the Union government, which had collected Rs 25 lakh crore as excise duty on petrol and diesel, was trying to run the government from this amount as it had failed to expand the economy.
Pinaki Chakraborty said India's current macroeconomic situation is better than what it was during the first wave of the COVID-19 pandemic and should recover faster if there is no third wave.
In first two months of 2019-20, the fiscal deficit was 52 per cent of the then Budget target. The budget target set for fiscal deficit in FY2021-22 is Rs 11.40 lakh crore.
The finance ministry has ruled out any fresh borrowing for the stimulus package announced on Manday, claiming that it will have no impact on India’s fiscal roadmap this year.
New Covid package to raise fiscal deficit by 60 bps, opens Rs 70,000-crore new loan window: SBI report
The fiscal impact of latest announcements and earlier is not linear as a substantial portion of the package is contingent liabilities.
Sreejit Balasubramanian, India economist at IDFC Mutual Fund, says the immediate fiscal expenditure from today's measures is 0.77% of GDP, of which 0.56% is from measures already announced.
UBS Securities India chief economist Tanvee Gupta Jainnoted that the elevated fiscal deficit has also led to historically high public debt levels, flagging concerns on the steep jump.
The anti-evasion measures being put in place will lead to higher compliance-level and see accounting for full 12 months' revenue from the Goods and Services Tax (GST) from next year.
The government outlined a fiscal deficit target of 3.3 per cent of GDP in 2018-19 as against a revised estimate of 3.5 per cent in 2017-18, indicating some fiscal consolidation, but at a slower pace.
According to the CSO, GDP growth rate for the first quarter of 2017-18 fell to a three-year low of 5.7 per cent, in what seems to be a direct fallout of demonetisation.
India retained its fiscal deficit target of 3.5 percent of gross domestic product for fiscal year to March 2017, as against 3.2 percent mentioned incorrectly in the budget document.