India’s fiscal deficit from April to October for the financial year 2020-21 was pegged at Rs 9.53 lakh crore, which is 119.7 per cent of the budgeted target of Rs 7.96 lakh crore for the whole year, government data reflected here on Friday. The deficit is nearly 120 per cent of the annual budget estimate.
Fiscal Deficit is the difference between the total income of the government (total taxes and non-debt capital receipts) and its total expenditure.
The government has registered a reception of Rs 7.08 lakh crore (31.54 per cent of corresponding BE 2020-21 of total receipts) up to October 2020 comprising Rs 5.75 lakh crore tax revenue (net to centre), Rs 1.16 lakh crore of non-tax revenue and Rs 16,397 crore of non-debt capital receipts. Non-debt capital receipts consist of recovery of loans (Rs 10,218 crore) and Disinvestment proceeds (Rs 6,179 crore), the Ministry of Finance noted.
Total expenditure undertaken by the government of India is Rs 16,61,454 crore (54.61 per cent of corresponding BE 2020-21), out of which Rs 14,64,099 crore is on revenue account and Rs 1,97,355 crore is on Capital Account. Out of the total revenue expenditure, Rs 3,33,456 crore is dedicated to interest payments and Rs 1,85,400 crore is on account of major subsidies.
“Rs 2,97,174 crore has been transferred to state governments as devolution of share of taxes by the government of India up to this period which is Rs 69,697 crore lower than the previous year,” the ministry said. The deficit has risen mainly on account of poor revenue realisation. The lockdown implemented to curb the spreading of coronavirus infections had significantly offered a blow to business activities and in turn, contributed to sluggish revenue realisation.