Fiscal deficit likely to stay at budget estimate of 6.8% of GDP in 2021-22

Tax revenues may not narrow deficit; food, fertiliser subsidies to overshoot BE

The fiscal deficit is likely to stay at the budget estimate (BE) of 6.8 per cent of gross domestic product (GDP) in 2021-22, according to a senior official, because tax collection, however robust, may not be able to narrow the gap.
 
The fiscal deficit estimated by the Budget is Rs 15.07 trillion.
 
The official said the target would not see any reset in the revised estimates because the Centre is likely to overshoot its expenditure on subsidies, mainly on food and fertilisers.
 
The increase is expected primarily due to an extension of the free food grain distribution