The country’s fiscal deficit has reached 63.2 per cent of the budget estimate, which is Rs 6.62 lakh crore in the first quarter of the current financial year. The main reason for the decline in tax collection is due to the corona virus epidemic and lockdown.
At the end of the first quarter, the revenue deficit was 611.4 percent of the budget estimate of the previous fiscal. In the 2020-21 general budget presented in February, Finance Minister Nirmala Sitharaman set a fiscal deficit target of Tk 96 lakh crore or 3.5 per cent of GDP for the current financial year.
These figures, however, can be revised in light of the economic constraints created by the Covid-19 crisis. At the end of June, the financial sector reached Rs 622,3633 crore, according to data from the Comptroller and Auditor General (CGA).
The fiscal deficit reached 4.6 percent of gross domestic product (GDP) in the 2011-11 fiscal, the highest in seven years. This was mainly due to the decline in revenue collection. According to the CGA, the government’s revenue collection stood at Rs 15,006 crore, .4.4 per cent of the budget estimate.
It was 14.5 percent in the corresponding period of the previous fiscal. In the first three months of the financial year, tax revenue was Rs 13,422 crore, or 8.2 per cent of the budget estimate. The tax revenue estimate for the first quarter of the previous fiscal was 15.2 percent. The total receipt of the government is 6.8 per cent of the budget estimate i.e. Rs 153581 crore.
The government has spent a total of Tk 22.45 lakh crore in the budget. The total expenditure of the government till the end of June was Rs 8,15,944 lakh crore, which is 26.6 per cent of the budget estimate. The total expenditure during the same period of the previous financial year was 25.9 percent. As of June, the central government had transferred Rs 1,404,433 crore to the state governments as part of the tax, which was Rs 1.6 crore less than the previous year.