1 Feb 2021

Fiscal deficit soared to 9.5% for FY21 while it has been set at 6.8% for FY22

Owing to higher government borrowing in FY21 to mitigate impact of Corona crisis, fiscal deficit for FY21 surged to 9.5% of GDP as per revised estimation. For next fiscal year it has been pegged at 6.8% of GDP.

author dp
Team INRBonds
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Owing to higher government borrowing in FY21 to mitigate impact of Corona crisis, fiscal deficit for FY21 surged to 9.5% of GDP as per revised estimation. For next fiscal year it has been pegged at 6.8% of GDP.

During Feb & March of current fiscal year Union Government has decided to borrow extra Rs 800 billion. This will make gross borrowing at Rs 13900 billion for current fiscal year. Net borrowing stood at Rs 12737.88 billion for FY21.

For next fiscal year, gross borrowing has been estimated at Rs 12000 billion while net borrowing pegged at Rs 9317.21 billion.

 

 

Rs bn

Budget Nos

FY20BE

% change over FY19RE

FY20RE

% of FY20 BE

FY21BE

% change over FY20RE

FY21RE

% change of FY21 BE

FY22BE

% change over FY21RE

Fiscal Deficit

Gross Fiscal Deficit

7037.60

10.93%

7668.46

8.96%

7963.37

3.85%

18486.55

132.14%

15068.12

-18.49%

-

Nominal GDP

211006.07

12.00%

204422.33

-3.12%

224894.20

10.01%

195836.592

-12.92%

223645.388

14.20%

-

Nominal GDP Growth (%)

11.00%

-

7.50%

-31.82%

10.00%

33.33%

-4.20%

-142.00%

14.40%

-

-

Fiscal Deficit % of GDP

3.30

-

3.80

15.15%

3.50

-7.89%

9.500

171.43%

6.800

-28.42%

-

Government Borrowing Net

4731.22

11.92%

4739.72

0.18%

5448.69

14.96%

12737.88

133.78%

9317.22

-26.85%

-

Government Borrowing Gross

7100.00

24.34%

7100.00

0.00%

7800.00

9.86%

13900.00

78.21%

12000

-13.67%

-

Government Net Borrowing % of Fiscal Deficit

67.23%

0.89%

61.81%

-8.06%

69.86%

13.02%

68.90%

-1.36%

77.64%

12.68%

-

Repayment

2368.00

-

2360.27

-0.33%

2351.30

-0.38%

-

-

2682.78

 

-

G-sec buyback

500.00

-

-

-

300.00

-

 

 

 

 

-

G-sec switches

500.00

-

1650.00

230.00%

2700.00

63.64%

 

 

 

 

-

Government Borrowing Gross including buybacks

7600.00

-

7100.00

-6.58%

8100.00

14.08%

 

 

 

 

 

 

 

                                      

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