The country’s fiscal deficit during the first quarter of this fiscal widened to Rs 6.62 lakh crore or 83.2 per cent of the budget estimates, mainly on account of poor tax collections due to the coronavirus lockdown. Fiscal deficit during the corresponding period of last year was 61.4 per cent of the budget estimates. The government had pegged the fiscal deficit for 2020-21 at Rs 7.96 lakh crore or 3.5 per cent of the GDP in the Budget which was presented by Finance Minister Nirmala Sitharaman in February.These figures, however, may have to be revised significantly in view of the economic disruptions created by the COVID-19 crisis. In absolute terms, the fiscal deficit stood at Rs 6,62,363 crore at end-June, as per data by the Controller General of Accounts (CGA).
Reasons for the increase in fiscal deficit:
Reduction in tax revenue:
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