CURRENT AFFAIRS

Detailed explanation-1: -Deficits: Revenue deficit is targeted at 5.1% of GDP in 2021-22, which is lower than the revised estimate of 7.5% in 2020-21 (3.3% in 2019-20). Fiscal deficit is targeted at 6.8% of GDP in 2021-22, down from the revised estimate of 9.5% in 2020-21 (4.6% in 2019-20).

Detailed explanation-2: -In the corresponding period last year, the deficit was 46.2 per cent of the Budget Estimates of 2021-22. The government has budgeted fiscal deficit to be Rs 16.61 lakh crore or 6.4 per cent of the GDP in the current year ending March 2023. The deficit is funded by market borrowings.

Detailed explanation-3: -For fiscal 2022-23, the fiscal deficit of the government is estimated to be ₹16.61 lakh crore or 6.4% of the GDP.

Detailed explanation-4: -Union Budget 2023: Finance Minister Nirmala Sitharaman is well-placed to adhere to the budgeted fiscal deficit level of 6.4% of GDP, says EY in its November Economy Watch report. The fiscal deficit was at 9.2% of GDP in FY21, and at 6.7% in FY22.

Detailed explanation-5: -The combined Gross Fiscal Deficit (GFD) of the States, which increased to 4.1% of GDP in FY21, was brought down to 2.8% in FY22 PA. Given the geopolitical uncertainties, the consolidated GFD-GDP ratio for States has been budgeted at 3.4% in FY23.