BANKING AFFAIRS

Detailed explanation-1: -2.3 States have budgeted their consolidated gross fiscal deficit (GFD) at 2.8 per cent of GDP in 2020-21. Although the RE for 2019-20 placed the GFD at 3.2 per cent of GDP (Table II.

Detailed explanation-2: -The provisional accounts place the GoI’s gross fiscal deficit at 4.6 per cent of GDP for 2019-20, overshooting by 0.8 per cent of GDP over the RE (3.8 per cent of GDP) and by about 1.3 per cent of GDP over the BE (3.3 per cent of GDP).

Detailed explanation-3: -Deficits: Revenue deficit is targeted at 2.3% of GDP, and fiscal deficit is targeted at 3.3% of GDP in 2019-20. The target for primary deficit (which is fiscal deficit excluding interest payments) is 0.2% of GDP. GDP growth estimate: The nominal GDP is estimated to grow at a rate of 12% in 2019-20.

Detailed explanation-4: -The Finance Minister identified the fiscal deficit for FY 2019-20 at 3.8%(RE) and pegged it at 3.5% (BE) for FY 2020-21 which is consistent with government’s abiding commitment to macroeconomic stability as part of Medium Term Fiscal Policy cum Strategy Statement 2020-21.

Detailed explanation-5: -India’s fiscal deficit for FY23 estimated at Rs 17.5 lakh crore, FY24 Rs 17.95 lakh crore: SBI.