Global fiscal deficit

Accordingly, India's fiscal deficit -- the difference between revenue and expenditure -- for the April-May 2021-22 period stood at Rs 123,174 crore, or 8.2 per cent of the budget estimates (BE). The FY22 deficit has been pegged at Rs 15.06 lakh crore. Besides, the CGA data showed that fiscal deficit during the corresponding months of the previous fiscal was 58.6 per cent of that year's target.

This would mean that fiscal deficit that is budgeted at 6.8 per cent of the GDP for FY22 may rise to 7.3 - 7.4 per cent level as a direct result of the stimulus that also includes subsidy increase for food and fertiliser sectors. "The fiscal impact of announcements made yesterday and earlier is not linear as substantial portion of the package is contingent liabilities.

The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), the Central government agency engaged in procurement, processing, distribution, export and import of various agricultural commodities, has, in collaboration with the Tirupati Cooperative, opened its first grocery store in the name of NAFED Bazar in Gurugram.

The report noted that although the fiscal deficit expanded everywhere, the magnitude of response was divergent in advanced economies (AEs) and emerging and developing economies (E&DEs). "Our calculations suggest that the global fiscal deficit almost tripled to $6.5 trillion (or 9.8 per cent of GDP) last year from $2.2 trillion (or 3.2 per cent of GDP) in CY19," it said.