Fiscal figures point towards lower than estimated FY21 deficit
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2021/03/3d8cc5e23cbcc4c4df7826afbf758e19.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Latest revenue as well as expenditure figures point towards a lower than estimated fiscal deficit for FY21, said the SBI Ecowrap report.
As per the report, the latest revenue and expenditure numbers could lead to lowering of fiscal deficit to 8.7 per cent of GDP from 9.5 per cent as per revised BE in FY21 budget.
"If this is so, it is highly likely that the government might cancel its borrowing planned in the last 2 weeks of Mar'21, totalling Rs 49,000 crore," the report said.
"This in turn might lead to lowering of 10 year G-sec yield by end-March. And the better than expected revenue position could be a leverage for tax rationalisation on petroleum products too in the coming days."
Separately, the report proposed an increased and graded subsidy may be provided to "poor consumers" for LPG cylinders, which can be tapered off over a time period.
"For this, the government can create a comprehensive merged database using databases of Ayushman Bharat, PM-KISAN, PMJDY, PMUY and MUDRA and then provide these people with maximum four free cylinders in a year."
"Even if 5 crore people are eligible for this then the total cost to exchequer per year will be maximum Rs 16,000 crore."
![](https://portfolio.investmentguruindia.com/uploads/news/telangana22.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Manoranjan Sharma, Infomerics Ratings.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Manoranjan Sharma, Infomerics Ratings.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/india22.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Manish Chowdhury.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Suman Bannerjee.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/farm22.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/karnal22.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Shrey Jain.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Economy.jpg)
Tag News
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/c5541407585e9dfdc52f905c92d59e61.jpg)
Monthly Debt Market Update, September 2023: CareEdge Ratings
![Quote on RBI decision to discontinue the incremental cash reserve ratio (CRR) By Dr. Manoranjan Sharma, Infomerics Ratings](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/3fb5395769079c26d9056714d034c581.jpg)
![Governance mechanism, customer-centricity can help in fintech ecosystem sustainable growth: Ajay Chaudhary](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/07e25a74a16d5c092d179215565d0295.jpg)
![3 Centres of Excellence set up by TIDCO finding good traction: Tamil Nadu Minister](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/e6ff15c8d3a72074f69cb881ab6584e7.jpg)