‘General fiscal deficit in FY22 likely at 10.4%’

Rating agency ICRA on Wednesday said it expects a miss in the disinvestment target to cause the government’s fiscal deficit to print at ₹16.6 lakh crore, or 7.1% of the GDP in FY2022, overshooting the

Rating agency ICRA on Wednesday said it expects a miss in the disinvestment target to cause the government’s fiscal deficit to print at ₹16.6 lakh crore, or 7.1% of the GDP in FY2022, overshooting the budgeted target.

With the State governments’ fiscal deficit projected at a relatively modest 3.3% of the GDP in FY2022, the general government fiscal deficit is estimated at about 10.4% of the GDP, the agency said.

In the base case for FY2023, it sees the government’s fiscal deficit moderating to ₹15.2 lakh crore, or 5.8% of the GDP.