Fiscal deficit reaches 120% of annual target
Gap widens due to poor revenues
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, according to official data released on Friday. 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.