The Government stuck to it’s fiscal deficit target for FY2020 despite a significant
shortfall in revenues collections for FY19. Gross tax revenues for FY19 fell way
short of expectations at ` 20.8 lakh cr. as compared of revised target of ` 22.5
lakh cr. As a result net tax revenue came in short at ` 13.17 lakh cr. as compared
to revised estimates of ` 14.84 lakh cr.
The Government stuck to the interim budget fiscal deficit figure of ` 7.03 lakh cr.
for FY2020 in the final budget, though relying more on non tax revenues and
disinvestment proceeds in order to make up for the shortfall in tax revenues. While
the fiscal deficit for FY2020 in absolute numbers was maintained at ` 7.03 lakh cr.
upward revisions in GDP numbers for FY2020 resulted in the fiscal deficit falling to
3.3% against 3.4% of GDP as projected in the interim budget.
