The Centre's fiscal deficit will touch at least 6.1 per cent of gross domestic product (GDP) in 2020-21 (FY21). This is based on the first set of advance growth estimates released by the government.
ICRA expects India's fiscal deficit to widen to Rs 14.5 lakh crore or 7.5 percent of GDP in FY21 and 5 percent of GDP in the next fiscal.
CARE Ratings has revised downwards its projection of the Centre's fiscal deficit to 7.8 percent of GDP during FY21 against its earlier estimate of 9-9.5 percent.
According to Motilal Oswal, the significant shortfall in receipts is likely to lead to doubling of fiscal deficit to an estimated 6.9 percent of GDP in 2020-21.
Fitch Solutions revised its forecast for central government's fiscal deficit for FY21 to 7.8 percent from its earlier projection of 8.2 per cent.
Moody's expects the combined fiscal deficit of the Centre and the states to remain at 12 percent of GDP in the current financial year.Shivani Sharma, Pragati Srivastava