Current Affairs In Detail

Fiscal deficit may increase in March despite nationwide lockdown
Fiscal deficit may increase in March despite nationwide lockdown

The report stated that the government is might not meet its revised target of 3.8% of GDP due to the COVID-19 pandemic.

10 April 2020 Current Affairs:Data released by the Government of India stated that India's fiscal deficit stood at 5.07% of gross domestic product (GDP) in February 2020. The report stated that the government might not meet its revised target of 3.8% of GDP due to the COVID-19 pandemic.

Report highlights:
♦ The fiscal deficit target was increased to Rs.7.66 lakh crore (3.8%) of the GDP in July 2019 by invoking the escape clause under the Fiscal Responsibility and Budget Management Act (FRBM).
♦ As per the data from the Controller General of Accounts (CGA), India's fiscal deficit reached Rs.10.36 lakh crore at the end of February 2020. 
♦ It also stated that government revenues are likely to take a substantial hit in March, despite nationwide lockdown.
♦ It also highlighted that expenditures for the month should rise due to various costs arising from the virus containment efforts and enforcing the lockdown.
♦ According to the report, the state governments received about Rs.90,000 crore as tax devolution and around Rs.29,000 crore for various schemes in FY20.