The Centre’s fiscal deficit for the first two months of financial year 2020-2
The Centre’s fiscal deficit for the first two months of financial year 2020-21 (FY21) came in at Rs 4.66 trillion, or 58.6 per cent of the full year target of Rs 7.96 trillion.
This was primarily because of a crunch in tax and non-tax revenues and capital receipts, official data released on Tuesday showed. It was 52 per cent for the corresponding period last year.
According to the Controller General of Accounts, net tax revenue for April-May was 2.1 per cent of the full-year target, compared with 7 per cent a year ago. Non-tax revenue was 2.8 per cent, compared with 9.1 per cent last year, and non-debt capital receipt was 0.4 per cent, as against 2.6 per cent a year ago.
Total revenue was Rs 45,498 crore, or 2 per cent of the budgeted estimate of Rs 22.46 trillion, compared with 7.1 per cent last year.
“With a severe squeeze in revenue receipts amid a marginal contraction in total spending, the Government of India’s fiscal deficit widened to Rs 4.7 trillion in the first two months of what is…