Fiscal Deficit of GoI touched 132% of full year target
On January 31, 2020, the Controller General of Accounts (CGA) released data on fiscal deficit of Government of India. According to the report, the fiscal deficit of India touched 132.4% of the full-year target in December, 2019.
The gap between revenue and expenditure is terms as fiscal deficit. According to the CGA data, the fiscal deficit was 9,31,725 crores of rupees. During 2018-19 budget, the fiscal deficit was 112.4%. GoI is trying to reduce the deficit to 7,03,760 crores by the end of March 2020.
Economic Survey on Fiscal Deficit
The Economic Survey that was released recently suggests that the fiscal deficit target of 3.3% of GDP has to be relaxed. It suggests to reduce the deficit to 3% of GDP in 2020-21.
It is to be noted that GoI’s step to reduce corporate taxes in September 2019 was a major hit. Following the step, GoI received a major hit of 1.45 trillion rupees on revenue mobilization.