Fiscal deficit reaches 120% of annual target

#GS3 #ECONOMY

  • The Union Government’s fiscal deficit further widened to ₹9.53 lakh crore, or close to 120% of the annual budget estimate, at the end of October of the current fiscal. 
  • The deficit widened mainly due to poor revenue realisation.
  • The lockdown imposed to curb spreading of coronavirus infections had significantly impacted business activities and in turn contributed to sluggish revenue realisation.
  • The fiscal deficit at the end of September 2020 was about 114.8% of the annual budget estimate. 
  • In absolute terms, the fiscal deficit stood at ₹9,53,154 crore at October-end, which is 119.7% of the annual budget estimates, as per the data released by the Controller General of Accounts. 
  • The fiscal deficit or gap between the expenditure and revenue had breached the annual target in July this year.
  • In the first 7 months of the previous fiscal, the deficit was at 102.4% of the annual target.
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