Fiscal deficit at 4.6% for FY20 as revenue sags
Budget estimate was 3.8%
The country’s fiscal deficit widened to 4.6% of the gross domestic product (GDP) in 2019-20 mainly on account of poor revenue realisation, according to official data.
The deficit, which signifies the gap between government revenue and expenditure, is higher than the revised estimate of 3.8% for the fiscal.
According to the Controller General of Accounts (CGA) data, the fiscal deficit for 2019-20 worked out to be 4.59% of the GDP, while the revenue deficit was 3.27%.
The effective revenue deficit was 2.36%, the data showed. The increase in the fiscal deficit has been mainly on account of shortfall in revenue collection during 2019-20.
Revenue receipts during the year worked out to be only 90% of the revised estimate.
In absolute terms, total receipts of the government were ₹17.5 lakh crore against the estimate of ₹19.31 lakh crore.
The data showed the government’s total expenditure was ₹26.86 lakh crore, lower than the ₹26.98 lakh crore projected earlier.