What is the fiscal deficit? Why does it matter? Let's explore its economic implications in our comprehensive article
Financial Year | Fiscal Deficit |
---|---|
2013-14 | 4.50% |
2014-15 | 4.10% |
2015-16 | 3.90% |
2016-17 | 3.50% |
2017-18 | 3.50% |
2018-19 | 3.40% |
2019-20 | 4.60% |
2020-21 | 9.20% |
2021-22 | 6.80% |
2022-23 | 6.40% |
2023-24 | 5.80% |
Period | Fiscal Deficit Overview |
---|---|
1947-1970s | Relatively modest fiscal deficits characterised this period, showcasing cautious spending. |
1980s | Fiscal deficits increased due to rising expenditures, notably subsidies and welfare programs. |
1990s | Alarming levels of fiscal deficits led to a balance of payments crisis and triggered economic reforms. |
Late 1990s - Early 2000s | Fiscal discipline improved, and deficits were contained within manageable levels. |
2008 Global Financial Crisis | Stimulus measures and increased spending widened the fiscal deficit in response to the economic slowdown. |
Post-2008 | Efforts were made to reduce the deficit gradually, but challenges persisted, including subsidy burdens and weak tax revenues. |
2017 | Implementing the Goods and Services Tax (GST) aimed to enhance revenue collection. |
2020 COVID-19 Pandemic | Significant spending measures to support the economy led to a significant expansion of the fiscal deficit. |