The Centre’s budgetary spending in August declined 15% on year, against 6% growth in July and the budget estimate of 13.2% growth for the current financial year. Budgetary capex in August at Rs 22,598 crore was down 21% on year.
April-August fiscal deficit was 109.3% of FY21 target.
With net tax revenue declining by about 30% on year in April-August, analysts see fiscal deficit doubling from the budgeted level of Rs 8 lakh crore for FY21, even for maintaining the budgeted spending. Another tranche of fiscal stimulus to be unveiled in November might not entail additional budgetary cost, given the massive expenditure re-prioritisation.
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