COVID-19 impacts central govt's revenue in FY21

Total receipts have declined 24.2% in April-October 2020 compared to same period last year. Capital expenditure is 1.9% lower and only 48% of the budget estimate. Financing of the fiscal deficit is mainly by way of market borrowings.

Total expenditure has increased marginally by 0.4% primarily on account of increase in revenue expenditure. Revenue Expenditure accounted for 89% of the expenditure and registered a 0.7% YoY growth. Capital expenditure declined 1.9% in Apr-Oct'20 compared to same period last year.

Revenue deficit of the central government has reached 126.7% of the budget estimate. Revenue deficit from Apr-Oct FY21 was estimated at Rs 7.7 lakh crore.

Fiscal deficit of the Central government has surpassed budget estimate for the full year by 19.7%. In Apr-Oct'2020, fiscal deficit was 119.7% of the budget estimate compared to 102.4% in same period last year.

The pandemic-led economic disruption has weighed on tax revenues of the government. In April-October 2020, tax revenue was only 35% of the budget estimate. However, when compared with the same period of last year it was nearly 28% higher. Barring excise duties all major heads of taxes have declined.