BUDGET 2021-22: FISCAL DEFICIT

About:

• Fiscal deficit in RE 2020-21 is pegged at 9.5% of GDP. It has been funded through Government borrowings, multilateral borrowings, Small Saving Funds and short term borrowings.
  
  
• Another Rs 80,000 crore would be needed for which Government would be approaching the markets in these 2 months.
  
  
• The fiscal deficit in BE 2021-2022 is estimated to be 6.8% of GDP. The gross borrowing from the market for the next year would be around 12 lakh crore.
  
  
• Finance minister will be proposing an amendment to the FRBM Act towards achieving Central Government fiscal deficit along the broad path indicated above.