Centre's fiscal deficit to shoot up to 7.6 % in FY21

The Centre's fiscal deficit is expected to touch 7.6 per cent in 2020-21, more than double the Budget Estimate, as the country spends extra to minimise the impact of the COVID-19 pandemic while facing a shortfall in revenues.
At a combined level, the fiscal deficit of the Centre and states together will come at 12.1 per cent, with the states contributing 4.5 per cent, India Ratings and Research said in the report.
The pandemic has resulted in long lockdowns that chilled all the economic activities.
The agency said India's gross domestic product (GDP) will contract by 5.3 per cent, while states like Assam, Goa, Gujarat and Sikkim are expected to witness a double-digit contraction.