Eight of the projections by forecasting agencies expect the fiscal deficit goal to be 5.3% of the GDP
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Costly imports remain a challenge for the government. Plus, fear of reduction in exports has also increased.
Indian economy had slumped by 24.4% in the corresponding year last year
The tax revenue was only 28% of BE of 2020-21 in the year-ago period, which was at Rs 9.2 lakh crore of the total receipts.
From a fiscal perspective, the report estimates the consolidated deficit to narrow to 9.8% of GDP in the current year from 13.4% in FY21
The finance secretary also downplayed concerns about the taper tantrum or the impact of the withdrawal of excess liquidity in developed markets.
The government estimates a deficit of 6.8% of GDP, or Rs 15,06,812 crore, in the current fiscal year.
Gross borrowings includes repayments of past loans. For the next financial year, repayment for past loans has been pegged at Rs 2.80 lakh crore
The revised forecast showed a 1% decline due to the ill effects of the second wave of the Covid-19 pandemic.