2020 leaves the Indian economy in distress

2020 leaves the Indian economy in distress

Fiscal deficit hit 135% of the budget estimate in eight months of FY21

Govt had provided over Rs 1.15 lakh crore for food subsidy in the Budget

Exhausted its entire Budget allocation for 12 months on food and urea between April and November

Govt spent over Rs 50,000 crore in 8 months on fertilizer subsidy, which is over 104%t of the BE

The net revenue receipts is just 37% of the BE and expenditure nearly 63%

Lead to the fiscal deficit during April-November crossing Rs 10 lakh crore, against a BE of Rs 7.96 lakh crore

Latest deficit number is 33% higher than last year and 35% higher than the full-year budget estimate

However, if a sharp growth as in November continues, it will help the Indian economy recover