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?