Fiscal deficit happens when the governmentÂ’s income is lesser than its expense. The presence of fiscal deficit means that the government is spending beyond its means.
IndiaÂ’s fiscal deficit in April-July (the first quarter of the current fiscal) is Rs.3.21 lakh crore. This 21.3 per cent of the budgeted target for the whole year. The fiscal deficit for 2020-21 was at 9.3 per cent of the GDP, lesser than 9.5 per cent estimated by the Finance Ministry in the revised budget estimate. This yearÂ’s fiscal deficit is expected to be 6.8 per cent of the GDP.