Fiscal deficit widened to 4.6%
India’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 provided by the Controller General of Accounts (CGA).
- The fiscal deficit for 2019-20 worked out to be 4.59% of the GDP. The deficit, which signifies the gap between government revenue and expenditure, is higher than the revised estimate of 3.8% for the fiscal.
- The revenue deficit for 2019-20 was 3.27% of the GDP. The effective revenue deficit was 2.36%.
- 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.