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Increased Fiscal Deficit of Government

  Feb 03, 2021

Increased Fiscal Deficit of Government

Q. What is the news?

The government’s fiscal deficit has increased to Rs. 11.58 lakh crore or 145.5% of the Budget Estimate (BE) at the end of December 2020 (accounting for the first nine months of the year 2020-21) mainly on account of lower revenue realisation.

Q. What are the Fiscal Deficit Target Fixed for 2020-21 and previous year?

A.  The Centre had pegged the fiscal deficit at Rs. 7.96 lakh crore or 3.5% of the Gross Domestic Product (GDP).

Fiscal Deficit in 2019-2020: According to the data released by the Controller General of Accounts (CGA), the fiscal deficit at the end of December in the previous fiscal year was 132.4% of the BE of 2019-20.

Q. What are the reasons for High Fiscal Deficit?

Lower Revenue Realisation:

Higher Expenditure:

Q. What is Fiscal Deficit? 

Q. What is the Formula for same?