#Coronavirus epidemic has played havoc not only with people's lives and livelihoods but, as a consequence, also with the finances of Governments across the World. #India is no exception. #Lockdown has flattened the wrong curve!
Ive just seen the end of June 2020 account of #GoI
That table is from: cga.nic.in/MonthlyReport/…. So what does it tell us? Budget 2020 planned ( that's the same as Budget Estimates or BE) to generate revenues in 2020-21 of 20.2 Lakh Crores (LC). In Q1 (April May June) the actual renenue was 1.5 LC.
(1 LC is 1 trillion).
That is a measly 7.4% instead of the 25% of the total BE (granted it comes in in unevenly over the year wit the most in the last Quarter. but such a big shortfall??).
Now on the Expenditure side the picture looks like this:
The Govt planned to spend 30.4 LC and has so far actually spent 8.1 LC of that just over 26% in Q1. that was necessary because of all the support for the distress of #Covid19. But it sure does shore up trouble for the future. The fiscal deficit looks like this:
If you followed this so far then you'll realize that the fiscal deficit: the Total Spend - Total Receipts gap is a whopping 4/5ths of the entire year's planned deficit. Almost all of the Year's revenue deficit has already been incurred.
The primary deficit is the fiscal deficit less the amount the Govt has to pay out as interest in accumulated debt. At 5 lakh crores in Q1 this number is already 6 times the BE amount of 0.88 LC. !!
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