Fiscal deficit in the first two months through May stood at Rs 4.66 lakh crore or 58.6 per cent of the budgeted target for the current fiscal year, government data showed on Tuesday. Net tax receipts during April-May period were Rs 33,850 crore, while total expenditure was Rs 5.12 lakh crore, the data showed, indicating the government was front-loading its budgeted spending to combat the impact of pandemic.
In April this year, Reserve Bank of India governor Shaktikanta Das had said that Meeting the fiscal deficit target in current financial year is going to be challenging, adding that the central bank has not yet made a decision on its monetisation. In fact, experts have said that the combined fiscal deficit of the centre and states may go up to 13-14 per cent this fiscal.
The central government’s fiscal deficit touched 4.6 per cent of GDP in 2019-20 fiscal year ending March, from initial estimates of 3.3 per cent.