BANKING AND ECONOMY
The revenue-expenditure data of the Union government for the financial year 2020-21 was released by the Ministry of Finance. It is a revised Budget Estimates of the Union Government which predicted the fiscal deficit of this fiscal year is lower than than the previous estimation of 6.9%.
As per the report, the fiscal deficit is estimated at 6.71% for the financial year 2020-21, which is lower than the previous estimation of 6.9%. The revenue deficit for the year 2021-22 was projected at 4.37%.
The fiscal deficit in the absolute terms was Rs 15.86 trillion (provisional), as per the data given by the Controller General of Accounts (CGA).
The Provisional data indicate that the Union Government benefitted from the higher tax (+Rs. 0.55 trillion) and non-tax (+Rs. 0.34 trillion) revenue receipts and lower capital spending (-Rs. 0.1 trillion).
For the last financial year, the government had initially pegged the fiscal deficit at 6.8% of the GDP in the budget presented in February 2021.
A fiscal deficit is a difference between the total revenue and total expenditure of the government. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.