Is 2021 a budget deficit?

3.5% of GDP was the fiscal deficit target for 2020-21. Due to Covid-19 pandemic, the budget deficit shot up to 9.5% of the GDP. For the year 2021-22, the fiscal deficit target has been pegged at 6.5% of the GDP. You can read about the Union Budget 2021 Summary in the given link.

Covid-19 pandemic impacted the revenue of the Government and the Government had to spend more for social welfare schemes to protect poor and vulnerable people.

Further readings:

  1. Difference between Economic Survey and Union Budget
  2. Previous Years Economics Mains Questions in UPSC Civil Service Exam, General Studies Paper – 3

Related Links

Revenue Receipts- Tax Revenue and Non-Tax Revenue

Goods and Services Tax (GST) – An Overview on Slabs, Rates, Origin

Taxation System in India – Types, GST, VAT, Objectives, Limitation

VAT – Indirect Tax Subsumed by GST

UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure

Previous Years Economy Questions in UPSC Prelims [2013-2021]

Fiscal Responsibility & Budget Management (FRBM) Act – UPSC Economics Notes

Economics Notes For UPSC IAS Examination

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