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