India ended financial year 2019-20 with a fiscal deficit of 4.59 per cent of the GDP against the target of 3.8 per cent. Data released by Controller General of Accounts (CGA) shows that the fiscal deficit, or excess of expenditure over receipts, was to the tune of Rs 9.35 lakh crore against the target of Rs 7.66 lakh crore.
With the GDP at current prices for 2019-20 at Rs 203.4 lakh crore, the fiscal deficit for 2019-20 comes at 4.59 per cent, almost 80 basis points more than the revised estimate of 3.8 per cent.
The net revenue receipt of the government in the financial year 2019-20 was Rs 16.82 lakh crore, against the revised target of Rs 18.5 lakh crore, a shortfall of Rs 1.7 lakh crore. This shortfall was largely on account of lower than expected tax collection.
The gross tax collection for FY20 was Rs 20.09 lakh crore, against the revised estimate of Rs 21.63 lakh crore. What is more worrying is the fact that the gross tax collection is lower than the previous year's collection of Rs 20.8 lakh crore.
Net tax collection (after deducting the states' share) was Rs 13.55 lakh crore, against the revised estimate of Rs 15 lakh crore.
Meanwhile, Centre's share of GST collection in the financial year was Rs 6 lakh crore, as opposed to the revised estimate of Rs 6.12 lakh crore. However, it is slightly higher than Rs 5.81 lakh crore reported in 2018-19.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today