Fiscal deficit widens to โ‚น9.1 lakh crore

The fiscal deficit continued to soar in September to reach โ‚น9.1 lakh crore, or almost 115% of the budget target of โ‚น7.96 lakh crore for 2020-21, as per data from the Comptroller General of Accounts.

The revenue deficit hit 125.2% in the first half of the year, with revenue receipts continuing to suffer in view of lower economic activity due to COVID-19.

โ€œThe monthly expenditure trends revealed a discordant sharp contraction in both revenue and capital expenditure in September 2020, suggesting that the expenditure management restrictions are outweighing the fiscal support measures announced so far,โ€ said Aditi Nayar, principal economist at ICRA.

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