Consolidated Fiscal Deficit May Reach 14% Of Gross Domestic Product (GDP) In 2020-21, Says Barclays

2021-01-22 13:13:25

Budget 2021: Fiscal Deficit May Reach 14% Of GDP In 2020-21, Says Barclays

Budget 2021: The budget assumes major significance this year as the government will present one that has to deal with the economic fallout amid the COVID-19 pandemic. According to a recent research report by Barclays, Budget 2021 will focus on the revival of economic growth. Considering this, Barclays expects that the country’s consolidated fiscal deficit will reach 14 per cent of gross domestic product (GDP) during the financial year 2020-21 and will decline gradually over the next five years, amid the prioritisation of reviving growth in the near term. Out of the 14 per cent of GDP, the central government’s share will be 7.7 per cent, the state governments’ will be five per cent, and off-balance sheet items will have a share of 1.3 per cent. 


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