With Rs 20-trn package, fiscal deficit to balloon to 7.9% in FY21: Report

"We estimate a 4.5% direct impact on fiscal deficit purely because of revenue shortfall / automatic fiscal stabilizer and a 0.9% indirect effect because of GDP change," the SBI report says

With the government's Rs 20 trillion stimulus package, the country's fiscal deficit is likely to be more than double to 7.9 per cent in the current financial year, according to an SBI research report.

The report had earlier estimated the fiscal deficit to be 3.5 per cent of GDP this fiscal.

The government has announced a cumulative package of Rs 20 trillion, which is nearly 10 per cent of GDP to provide relief to various segments of the coronavirus-hit economy.

"After taking into account cash outflow of these measures as well as the previous and the recent excise duty hike