India’s Fiscal Deficit is at ₹4.32 lakh crores

4 Aug 2019

India’s Fiscal Deficit is at ₹4.32 lakh crores

India’s Fiscal Deficit is at ₹4.32 lakh croresThe government’s fiscal deficit is at ₹4.32 lakh crores and has crossed 60% of the target for the whole year.

The Controller General of Accounts of India (CGA) has recently shared this information.

What is Fiscal Deficit?
Let's say, you have ₹100 and you decide to spend ₹5 every day on a small candy bar. How much money will you need in a month? The answer would be ₹150. But what happens since we only have ₹100?  The extra ₹50 rupees that we want to spend, but don’t actually have, is called the deficit.

Now, many people will know, the government makes its money from taxing the people. In turn, the government spends this money on public things like roads, hospitals, etc - which everyone uses.
But, sometimes, the government also spends more than it gets. The difference between the government’s earning and its expenses is called the Fiscal Deficit.

So, keeping in mind what is given above, suppose the government decides that it won’t let this deficit cross 20 rupees for the whole year. But within three months only, the deficit crosses 12 rupees?  That is what happened has happened to the Indian government in June this year, as shared above by the CGA.

The CGA is the main Accounting Adviser to Government of India and is responsible for establishing and maintaining the accounts (spending and earning) of the Indian government.

At present, India's CGA head is Mr Girraj Prasad Gupta, 1983-batch Indian Civil Accounts Service (ICAS) Officer

Credit: TCP

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The government’s fiscal deficit is at ₹4.32 lakh crores and has crossed 60% of the target for the whole year. The Controller General of Accounts […]

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