Budget 2021 may show Centre's fiscal deficit at 5.5% of GDP for FY22

Topics Budget 2021 | Fiscal Deficit | GDP

The fiscal deficit could narrow to 5.5 per cent of GDP in FY22 from around 7 per cent in FY21
With just days to go for Budget presentation, all eyes are on the Centre’s fiscal maths. The fiscal deficit could narrow to 5.5 per cent of GDP in FY22 from around 7 per cent in FY21, according to Ecoscope: Budget 2021 Preview Report by Motilal Oswal Financial Services.

There was no massive fiscal stimulus in CY20, however, the significant shortfall in receipts is likely to lead to the doubling of fiscal deficit to an estimated 6.9 per cent of GDP in FY21, (from the budgeted 3.5 per cent), according to the report.



Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel