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Fiscal Deficit Widens
Why is it in news?
- As per the official data, fiscal deficit widened in September 2020.
Details:
- The Fiscal Deficit reach ₹1 lakh crore. It is almost 115% of the budget target of ₹7.96 lakh crore for 2020-21.
- The Revenue Deficit hit 125.2% in the first half of the year.
- The revenue receipts continuing to suffer in view of lower economic activity due to COVID-19.
More about Fiscal Deficit:
- It indicate the excess of government expenditure over receipts except borrowing.
- Fiscal deficit = Total Expenditure – Total Receipts except borrowings.
- Fiscal deficit represents the total borrowing requirements of the central government.
- It indicate the financial health of the budget and that of the government.
- Higher fiscal deficit becomes a matter of concern. On the other hand, a manageable fiscal deficit is a welcome sign.