Fiscal deficit touches 103% of Budget Estimate in April-July
                     FISCAL DEFICIT TOUCHES 103% OF 
BUDGET ESTIMATE IN APRIL-JULY
INTRODCUTION
 India’s fiscal deficit 
reached Rs 6.62 lakh 
crore, or 83.2% of the 
budgeted estimate in 
the quarter ended June 
as the government’s 
revenue remained 
stressed amid the 
disruptions caused by 
the coronavirus 
pandemic.
Source: Groww
WHAT IS FISCAL DEFICIT
 The difference between total revenue 
and total expenditure of the 
government is termed as fiscal deficit. 
 It is an indication of the total 
borrowings needed by the 
government.
Source: Investyadnya
PREVIOUS YEAR 
STATUS
 The gap between the 
revenue and 
expenditure during the 
same period in 2019-20 
stood at 61.4% of the 
budgeted target, 
according to data on the 
website of the Controller 
General of Accounts.
Source: Reuters
COVID-19 IMPACT
 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. 
 But that’s expected to be revised as the 
government increased its borrowing 
target to tide over the Covid-19 crisis.
Source: BloombergQuint
MARKET BORROWINGS
 The coronavirus pandemic struck India’s economy when it 
was already slowing.
 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: Business Standard
LOCKDOWN 
IMPACT
 The world’s biggest 
lockdown stocked all 
business activities, 
barring essentials, and 
capped consumption, 
before the nation began 
to ease curbs from May-
end. 
 Still, that pushed the 
economy to what may 
be its first full-year 
contraction in more than 
four decades.
Source: The Economic Times
REVENUE 
RECEIPTS
 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.
 Revenue deficit was at 
94.8% of the budgeted 
target of Rs 4.12 lakh 
crore.
Source: Business Standard
REVENUE 
EXPENDITURE
 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. 
 Revenue expenditure was at 
27.7% of the full-year target 
of Rs 26.30 lakh crore.
Source: Business Standard
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. 
 Of this, Rs 62,123 crore was collected as income tax 
against Rs 96,927 crore last year. 
 About Rs 54,212 crore was collected as corporate tax, 
23% lower than the amount collected last year.
Source: DNA India
GROSS TAX 
REVENUE
 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.
 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 during the unlock 
phase
Source: Business Standard
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