Minister of Finance Nirmala Sitharamane Budget 2021 focuses on spending bypassing the fiscal deficit. This is the reason why the fiscal food target for FY 2021-22 GDP No. 6.8 per cent. The government had set a fiscal deficit target of 3.5 per cent for the financial year 2020-21. However, it is projected to reach 7.5 per cent. However, according to a Bloomberg report, this could be 9.5 percent.
2.1 lakh crore
It may be mentioned that the government has set a budget of Rs 35 lakh crore for the financial year 2021-11. Apart from that, a target of Rs 1.75 lakh crore has been set for the transaction. The budget was set at Rs 2.1 lakh crore in 2020. In this budget, Rs 3.1 lakh crore has been allocated for the power sector. The sector has a debt of over Rs 4.5 lakh crore. In Budget 2020, the government estimated the country’s fiscal deficit at 3.5 per cent of GDP for the financial year 2020-21. However, economists say that this could reach 7.5 per cent of GDP in the current financial year. Thus, the fiscal deficit is likely to be 100 per cent higher than the budget estimate. It is estimated that the fiscal deficit will be Rs 14.5 lakh crore or 7.5 per cent of GDP in this financial year.
The fiscal deficit was projected at 3.5 percent
Finance Minister Nirmala Sitharaman had projected a fiscal deficit of Rs 7.96 lakh crore or 3.5 per cent of GDP in the 2020-21 general budget. Thus, the finance minister had estimated the gross market debt at Rs 7.80 lakh crore in the budget. Amid the Covid-19 crisis, the government, which is struggling with a cash crunch, increased its market debt program from 50 per cent to Rs 12 lakh crore in May for the current financial year.
194.82 lakh crore GDP estimate
Gross domestic product at current prices is estimated at Rs 194.82 lakh crore in 2020-21. So the initial estimate of current GDP for the financial year 2019-20 as on May 31, 2020 was Rs 203.40 lakh crore.