Fiscal deficit: After the announcement of the 20 lakhs package by Narendra Modi, “The country’s Fiscal deficit has doubled to 7.9 percent in the current financial year” to the SBI research report.
earlier those reports have estimated the fiscal deficit to be 3.5% of GDP.
But after the announcement of the stimulus package by the Indian government which is 10% of the Indian GDP to provide relief for various segments of the coronavirus-hit economy.
SBI research report Ecowrap:
SBI research report Ecowrap revealed “After taking under consideration cash outflow of those measures also because the previous and therefore the recent excise duty hike and Dearness Allowance freeze which amounting to around 0.8 percent of GDP, we now revise/rerate our baseline fiscal deficit which is excluding extra-budgetary resources to 7.9 percent of the revised GDP in FY2021 from 3.5 percent earlier, now it’s changed to 7.9% due to low income for the government and due to covid19.