Finance minister Nirmala Sitharaman Saturday estimated the fiscal deficit at 3.5% in FY21 (2020-21) and at 3.8% for FY20 (2019-20). Presenting her second budget under Modi 2.0 government, FM Sitharaman said that the nominal GDP growth for FY21 has been pegged at 10%.
"We estimate a fiscal deficit of 3.8% in RE 2019-20 and 3.5% for BE 2020-21," the Finance Minister added.
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She also estimated government receipts for FY21 at Rs 22.46 lakh crore and pegged the expenditure at Rs 30.42 lakh crore.
FM Sitharaman also said that the central government's debt had reduced to 48.7% of GDP in 2019 from 52.2%.
"There are one million people out of poverty and we should be proud of it. We have moved on from over 4% growth in 1950s to 7.4% to 2014-19 period," the Finance Minister said.
"We have clocked a GDP growth of 7.4% over 2014-19 and FDI increased from $119 billion in 2014-19 to $284 billion", she said.
"Motto of 'Sabka saath, sabka vikas and sabka vishwas' has implemented new programmes for the poor and disadvantaged under Prime Minister Modi," she added.
FM Sitharaman had set a fiscal deficit target of 3.3 per cent for the current financial year during her budget presentation in July.
But the government failed to meet its tax collection targets. Matters turned worse as persistent economic slowdown forced the government's hand to announce tax cuts and other sops.
Data by the Controller General of Accounts also revealed that 115 per cent of the fiscal deficit target for the full year was reached within the first eight months.
Nobel laureate Abhijit Banerjee recently stated that the fiscal deficit target has already been breached and he will advise against fiscal tightening measures.