- According to the data released by the Controller General of Accounts, Centre’s fiscal deficit touched 121.5 per cent(7.70 lakh crore) of the budgeted target of Rs 6.34 lakh crore for 2018-19 due to lower revenue collection.
- Fiscal deficit is the amount of money that the government needs to borrow in a given year because their expenses were more than their revenues.
- Government in the Interim Budget 2019-20 has budgeted the fiscal deficit at 3.4% of the Gross Domestic Product which is slightly higher than the target of 3.3% or Rs 6.34 lakh crore of GDP that the government had set itself last year.
- The deficit was expected to be higher than targeted due to a combination of revenue shortfalls and increased spending due to farmer’s income support scheme announced in the current fiscal.
