InvestorQ : What does it mean that fiscal deficit was lower in FY21? Is that good news?
indhumathi Sayani made post

What does it mean that fiscal deficit was lower in FY21? Is that good news?

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2 weeks ago
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The central fiscal deficit for FY21 came in about 30 bps lower than estimated at 9.2% of GDP. There was a surge in revenue receipts, largely on the direct taxes and GST front post December and that helped matters. However, one reason is also that absolute GDP was slightly better than expected for FY21 leading to lower ratio of fiscal deficit to GDP. There has also been back end of expenditure in many heads to the next fiscal.

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