The fiscal deficit for the April-October period has touched nearly 120% of the budget estimate (BE) in comparison to 102.4% during the corresponding period of last fiscal. Food and Consumer Ministries, along with Rural Development Ministry, have all exhausted their budget allocation for the full fiscal, in only seven months!

According to data publicized by the Controller General of Accounts (CGA), the fiscal deficit for the April-October period has touched ₹9.53 lakh crore as against ₹7.96 lakh crore. This is happening due to generating less revenue than higher expenditure. The total earnings during this period touch 31.5% of BE as against 44.9% of last fiscal. Tax collection, specifically from direct tax, is down, excluding collection from GST, which has improved in September and October. But still, it is not enough to fill the gap, which is why net tax collection reached 35.2% of BE. At the same, lesser than expected disinvestment affected non-tax review, which was less than one-third of BE as against more than two-third during the corresponding period of last fiscal.

The deficit was more driven by less revenue than higher expenditure. The data shows that the total expenditure is 54.6% of BE, as against 59.4% during the corresponding period of last fiscal. The Centre’s fiscal deficit is expected to widen from the budgeted level of ₹8-lakh crores, and ₹9.4-lakh crore in FY2020 to ₹14.5-lakh crore or 7.7% of GDP (assuming a contraction of 7.5% in the nominal GDP) in FY2021.