The central government’s fiscal deficit at the end of February worked out 76% of the revised estimate, indicating that it was likely to remain within the estimates made by Finance Minister Nirmala Sitharaman last month.
The minister revised the fiscal deficit estimates for 2020-21 to ₹ 18.48 lakh crore or 9.5% of GDP from the original budget estimate of ₹ 7.96 lakh crore or 3.5% of GDP, mainly to deal with excess Is in Outgo’s account. Kovid 19 Ubiquitous Epidemic.
According to figures released by the Comptroller and Auditor General (CGA), the fiscal deficit at the end of February was 76 14.05 lakh crore or 76% of the revised estimates. It is 135.2% during the same period of the previous financial year.
The total receipts of the government during April-February were 13 14,13,096 crore or 88.2% of the Revised Estimates (RER) were presented in the budget on 1 February. The collection was an estimated 74% over this year’s period.
The total expenditure of the Center, according to the CGA, was 28,18,643 crore, or 81.7% of the revised estimate. It was 91.4% RE during the same period of the previous financial year.
Finance Minister Nirmala Sitharaman, while presenting the budget 2021-22, said that the government proposes to bring down the fiscal deficit to below 4.5% of GDP by 2025-26.
The fiscal deficit is a sign of government borrowing to meet the shortfall between expenditure and receipts from taxes and other sources.
The deficit had increased to a high of 4.6% of GDP in 2019-20, mainly due to poor revenue recovery.
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