India's fiscal deficit in 2020-21 lower than expected

Total revenue receipts turned out to be about ₹88,000 crore higher than estimated, driven largely by higher excise and customs collections, while total expenditure was ₹61,000 crore more than the revised estimate.

India recorded a fiscal deficit of 9.3% of GDP in 2020-21, 0.2% lower than the revised estimate of 9.5% of GDP, according to the Controller General of Accounts (CGA).   Total revenue receipts turned out to be about ₹88,000 crore higher than estimated, driven largely by higher excise and customs collections, while total expenditure was ₹61,000 crore more than the revised estimate. The revenue deficit for the year was projected at 7.42% of GDP by the CGA.   Economists stressed that the number could change if the revised GDP numbers for 2020-21 turn out to be different than the GDP of ₹194.82 lakh crore assumed in the Union Budget for this year. Budget 2020-21, presented before the COVID-19 lockdowns, had set a fiscal deficit target of 3.5% of GDP.