India's Fiscal Deficit reaches 83% in first 3 months of FY20
                     INDIA'S FISCAL DEFICIT REACHES 
83%IN FIRST 3 MONTH OF FY20
INTRODUCTION
• India’s fiscal deficit reached Rs 6.62 lakh crore, or 83.2% of the budgeted estimate 
in the quarter ended June.
• The government’s revenue remained stressed amid the disruptions caused by the 
corona virus pandemic.
Source: The Hindu
FISCAL DEFICIT
• India’s fiscal deficit target estimated in the Union Budget 2020-21 was Rs 7.96 lakh 
crore, or 3.5% of the gross domestic product.
• The gap between the revenue and expenditure during the same period in 2019-20 
stood at 61.4% of the budgeted target.
Source: The Economic Times
MARKET BORROWING
• Market borrowings for the fiscal ending March 2021 has been increased to Rs 12 
lakh crore from Rs 7.8 lakh crore budgeted earlier.
Source: The Economic Times
REVENUE
• India’s revenue receipts were 7.4% of the target set for the current financial year 
against 14.5% achieved in the same period last year.
• The government’s revenue was Rs 1.50 lakh crore in April-June 2020.
Source: The Business Standards
EXPENDITURE
• The total expenditure was Rs 8.16 lakh crore, which was 26.8% of the full-year 
target compared with 25.9% spent last year. 
• The government’s capital expenditure was 21.4% of the budgeted target of Rs 4.12 
lakh crore.
Source: MoneyControl
REVENUE EXPENDITURE & DEFICIT
• Revenue expenditure was at 27.7% of the full-year target of Rs 26.30 lakh crore. 
• Revenue deficit was at 94.8% of the budgeted target of Rs 4.12 lakh crore.
Source: LiveMint
Tax Revenue
• The government’s net tax revenue in the April-June period was Rs 2.69 lakh crore 
against Rs 4 lakh crore collected a year ago.
– Direct tax collection was Rs 1.19 lakh crore, about Rs 51,460 crore lower than 
last year’s collection. 
– Total indirect tax collected during the period was Rs 1.51 lakh crore.
Source: Citibank India
GROSS TAX REVENUE
• The contraction in gross tax revenue has narrowed to 23% in June post a 
contraction of 41% in May, in line with some recovery in economic activity.
Source: ET
FUTURE EXPECTATION
• It is expected the net tax revenue, non-tax revenue and disinvestment proceeds 
together & the target budget target by more than Rs 6 lakh crore.
• Fiscal support announced under the 'Aatmanirbhar Bharat', and expenditure curbs, 
the fiscal deficit will surge to Rs 13 lakh crore.
Source: Zee News
GOVERNMENT 
ANNOUNCEMENT
• The government has announced a cumulative package of Rs 20 trillion, which is 
nearly 10 per cent of GDP .
• The package was announced for providing relief to various segments of the corona 
virus-hit economy. 
Source: The Economic Times