India’s fiscal deficit in the current financial year is likely to reach 7.4 per cent of the GDP on the back of enhanced government expenditure amid the pandemic, said the SBI Ecowrap report.
The report noted that as per the first advanced estimate of the GDP, real GDP will contract by 7.7 per cent in FY21, and nominal GDP growth is expected at (-) 4.2 per cent. Accordingly, the nominal GDP for FY22 would grow by 15 per cent to Rs 224.04 lakh crore.