CARE Ratings projects India’s combined fiscal deficit at 13% of GDP in FY21

Domestic rating agency CARE Ratings pegged India’s combined fiscal deficit at 13-13.4% of gross domestic product (GDP) for the current fiscal even as it assumed no further fiscal stimulus.
While the Centre’s deficit is expected to touch Rs 17.8 lakh crore against the target of Rs 8 lakh crore, the states are likely to record a deficit of Rs 7.73 lakh crore over the budgeted Rs 6.35 lakh crore, the agency said in a report on 28th September.
This implied a deficit of about 9% of GDP for the central government against the budgeted 3.5% and at 3.9% for the states over the budgeted 2.8%, resulting in a combined deficit of more than double the year’s target of 6.4%.