When looking at financial numbers the context and change over time is important. So a fiscal deficit in Year 20X1 of 5% can only be understood by looking at the time trend over a few years. So here's some time trend charts about #Budet2021 for #India.
1st the fiscal deficit
1st the fiscal deficit
The fiscal deficit is the gap between A)Total expenditure by the Government and B) the sum of revenue receipts (tax + non tax), loan recoveries, other receipts(these are mainly PSU disinvestments). This is the gap that has to be plugged by the Government borrowing money
#Budget2021 forecasts that the interest the Govt expects to pay for accumulated Govt debt (+ any new borrowing in-year) at 8.1 lakh crores). This makes most sense when seen as a proportion of revenue expenditure.
#Budget2021 made much of plans to spend spend spend on #Infrastructure. But it's really continuing the trend of last decade. The planned 1.8 trillion from PSU sales is hugely ambitious. If it happens it'll be more divestment than in last 3 years combined.
In 2020-21 planned PSU disinvestments of 2.1 trillion turned out to be an impossible target and the final actual achievement is now forecast to be a mere 0.3 trillion - 15% of the original planned in Budget2020.
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