InvestorQ : What has led to the fiscal deficit of India falling in the Jun-21 quarter?
ishika Banerjee made post

What has led to the fiscal deficit of India falling in the Jun-21 quarter?

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5 months ago
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For the Jun-21 quarter, India’s fiscal deficit stood at 18.2 per cent of the Budget Estimates which is start contrast to the previous year when nearly 83% of the total annual fiscal deficit estimates were spanned in the first quarter itself. Even in absolutely terms, the fiscal deficit in the first quarter of this year has been substantially lower and that is largely thanks to the government not undertaking any major spending effort to boost demand.

One reason was the sharp spike in receipts for the quarter at Rs.5.47 trillion. This includes Rs.4.12 trillion of tax revenues and Rs.1.27 trillion of non-tax revenues. Apart from the buoyancy in the tax revenues, there was also some contraction in revenue expenditure which resulted in the lower fiscal deficit in the quarter. Also, higher surplus transfers by the RBI have also helped along the way. A lot will now depend on the disinvestment program.

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