Fiscal deficit touches 135.1% of FY21 target at Nov-end

New Delhi: The Union government's fiscal deficit soared to Rs 10.75 lakh crore, or 135.1 per cent of the 2020-21 Budget Estimates (BE), at the end of November 2020, mainly on account of low realisation of revenue due to disruption in business activities amid the Coronavirus pandemic.

The fiscal deficit at the end of November 2019 had stood at 114.8 per cent of 2019-20 BE.

In absolute terms, the fiscal deficit stood at Rs 10,75,507 crore at the end of November 2020, according to the latest data released by the Controller General of Accounts (CGA).

The lockdown imposed to curb the spread of Coronavirus had significantly impacted business activities and, in turn, contributed to sluggish revenue realisation.

The fiscal deficit, or gap between the expenditure and revenue, had breached the annual target in July this year.

The government's total receipts stood at Rs 8,30,851 crore (37 per cent of BE 2020-21) till the end of November 2020. This included Rs 6,88,430 crore tax revenue (net to centre), Rs 1,24,280 crore of non-tax revenue and Rs 18,141 crore of non-debt capital receipts. Non-debt capital receipts consist of recovery of loans and disinvestment proceeds.

The tax revenue collection was 42.1 per cent of BE of 2020-21, compared with 45.5 per cent of BE (2019-20) during the corresponding period a year ago. Non-tax revenue was 32.3 per cent of BE. During the corresponding period of the last fiscal, it was 74.3 per cent of BE 2019-20.

During the corresponding period last fiscal, the total receipts were 48.6 per cent of 2019-20 BE.

According to the data, over Rs 3.34 lakh crore were transferred to state governments as devolution of share of taxes by the Government of India up to November 2020.