Fis­cal deficit at 4.6% for FY20 as rev­enue sags

Bud­get es­ti­mate was 3.8%

The Hindu - - BUSINESS - PRESS TRUST OF IN­DIA

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.

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