1) What is Fiscal Deficit
Fiscal Deficit in simple terms refers to the difference between Government’s revenue and Government’s expenditure. Higher the fiscal deficit, the more it leads to debt accumulation and borrowings.
2) Covid 19 Pandemic adverse effects on fiscal deficit.
During 2020-21, the whole world was set on fire as deadly corona was spreading at global level and major international economies witnessed a slowdown, same was the case with India, the fiscal deficit reached as high as 9.2% of the GDP, which also provided opposition with the opportunity to target the BJP government.
3) Decrease in fiscal deficit for 2024-25
FM Nirmala Sitharaman while giving her budget speech shed light on the fact that fiscal deficit is witnessing a decline which is a positive sign. For the next financial year (FY 2025-26) the government is targeting an even lesser fiscal deficit at 4.5% of the GDP.
