Icra Ratings said in a report on Wednesday that the fiscal deficit of the states in the current financial year is estimated to be at a relatively low level of 3.3 percent. In this way, the general fiscal deficit of the Center and the states can reach about 10.4 percent of GDP.
According to the report, in the next fiscal year 2022-23, the government’s fiscal deficit may come down slightly to Rs 15.2 lakh crore, which will be 5.8 percent of GDP.
ICRA’s Chief Economist Aditi Nair said the government’s gross tax receipts could be up to Rs 2.5 lakh crore higher than the budget estimates in 2021-22 due to a pick-up in tax collections. However, the fiscal deficit of the state governments will increase due to the end of the GST compensation system after June 2022.