Fiscal deficit surges to 8.07 lakh crore: an increase of 114.8 per cent

(PTI) New Delhi, Ta. December 31, 2019, Tuesday

As the economic downturn in the country advances, output in various eight core infrastructure industries (output) has declined for the fourth consecutive month in November. The decline was 1.50 percent in November.

The decline began in August 2019, which has continued in November. Meanwhile, production in the coal, crude oil, natural gas steel and electricity sectors declined by 2.50 percent to 6.40 percent.

The picture has seen a reversal in 2019, when the eight key sectors reported a growth of 3.30 percent in November last year. Production growth in the cement sector was 8.80 per cent in November 2018, down from 4.10 per cent in November 2019. Meanwhile, production growth in the refinery products and fertilizers sector was 3.10 percent and 13.60 percent over 2018.

From April 2019 to November, growth rates have dropped to zero in eight key sectors. This was 5.10 percent in the same period of 2018. Growth in crude oil production has been negative since November 2018, while natural gas production growth has been negative since April 2019. Coal production has been declining since July 2019.

While the figures for key industries in the country have come down, the fiscal deficit figures have also weakened. Such fiscal deficit has risen to 114.80 per cent against the Budget Estimates of 2019-20 from the end of November and such deficit has increased to Rs. 8.07 lakh crore has been made.

According to the CGA (Controller General of Account), this gap between the government's expenditure and income (deficit) increased by November. 807834 crores.

However, in the pre-Budget period, such deficit was Rs. The government had shown a determination of Rs 7.03 lakh crore and the government had projected to keep such a deficit against the GDP at 3.30 per cent, which was an estimate which was estimated to be overlooked now. The government has recently reduced the corporate tax. Apart from this, revenue has also fallen.