Fiscal deficit for 2019-20 at 4.6%

The Controller General of Accounts (CGA) on Friday reported fiscal deficit for 2019-20 at 4.6 per cent of the GDP as against 3.8 per cent projected in the revised estimate.

Fiscal deficit for the first month of this fiscal (2020-21) has reached 35 per cent of the Budget estimate

Fiscal deficit is difference between income and expenditure of the Government. One of the key sources to bridge the deficit is borrowing.

Reasons for the higher deficit include fall in nominal GDP growth rate to 7.2 per cent and decline in not only tax, but also non-tax revenue. As a result, the fiscal deficit was over ₹9.35-lakh crore against the revised Budget estimate of ₹7.66-lakh crore. Higher deficit also reflects much lower revenue from disinvestment and spectrum. At the same time cut in corporate tax mid year has an impact of over ₹1.45 lakh crore.