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India's fiscal deficit touches 83.2% of annual target in April-June quarter

Reuters 2020-07-31 11:04:00

NEW DELHI (Reuters) - India’s fiscal deficit in the three months to end June stood at 6.62 trillion rupees ($88.52 billion), or 83.2% of the budgeted target for the current fiscal year, government data showed on Friday.

Net tax receipts were 1.35 trillion rupees ($18.05 billion), while total expenditure was 8.16 trillion rupees, the data showed, indicating the government was front-loading its spending to combat the impact of the coronavirus.

The deficit is predicted to cross 7.5% of GDP in the 2020/21 fiscal year that began in April, private economists said, from initial government estimates of 3.5%, mainly due to a sharp economic contraction triggered by the pandemic.