Centre's fiscal deficit to widen to 7.5% of GDP in FY21: ICRA

Fiscal deficit to be 5% of GDP in FY22

by Nidhi Bhati

In view of the unprecedented impact of the Covid-19 pandemic, ICRA expects the central governments’ fiscal deficit to widen by 7.5 per cent of GDP to Rs.14.5 trillion in 2020-21. Based on sample data from 12 states, the state governments’ fiscal deficit is projected at 4.7 per cent of gross state domestic product (GSDP) in the current financial year indicating a general government fiscal deficit of around 12.2 per cent of GDP. For 2021-22, the rating agency foresees the general government fiscal deficit at 8.5 per cent of GDP i.e. five per cent of GDP for the Centre and 3.5 per cent of GSDP for the states. This may allow enough space for prioritising health expenditure, vaccine rollout as well as capital spending, given the revenue rebound that is widely expected.

References
1. https://www.icraresearch.in/research/ViewResearchReport/3492
2. https://www.cnbctv18.com/views/budget-2021-revenue-normalisation-will-ease-fiscal-strain-8072551.htm
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
6.8 0.0
Consumer Sentiments Index
Base September-December 2015
55.7 +0.3
Consumer Expectations Index
Base September-December 2015
57.7 0.0
Current Economic Conditions Index
Base September-December 2015
52.5 +0.9
Quarterly CapEx Aggregates
(Rs.trillion) Mar 20 Jun 20 Sep 20 Dec 20
New projects 3.83 0.91 1.33 0.93
Completed projects 1.73 0.26 0.72 0.69
Stalled projects 0.73 0.11 0.08 0.30
Revived projects 0.42 0.68 0.29 0.11
Implementation stalled projects 10.22 0.09 0.07 0.12
Updated on: 07 Mar 2021 8:28PM
Quarterly Financials of Listed Companies
(% change) Mar 20 Jun 20 Sep 20 Dec 20
All listed Companies
 Income -5.0 -27.6 -6.3 1.5
 Expenses -1.8 -27.9 -10.3 -0.1
 Net profit -51.1 -40.3 47.2 58.8
 PAT margin (%) 2.2 5.3 8.4 8.6
 Count of Cos. 4,376 4,373 4,372 4,323
Non-financial Companies
 Income -9.0 -37.4 -10.5 0.0
 Expenses -4.8 -37.7 -14.2 -1.0
 Net profit -52.2 -56.0 31.5 55.7
 PAT margin (%) 3.1 4.5 8.1 9.0
 Net fixed assets 13.5 5.8
 Current assets 2.5 0.7
 Current liabilities 5.4 -2.8
 Borrowings 15.8 8.1
 Reserves & surplus 1.7 4.4
 Count of Cos. 3,257 3,255 3,254 3,223
Numbers are net of P&E
Updated on: 07 Mar 2021 8:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.5 13.4 0.0
 Expenses 9.9 13.8 0.1
 Net profit -40.6 15.8 -10.5
 PAT margin (%) 1.9 2.2 3.7
 Assets 10.9 9.6 9.3
 Net worth 7.3 8.4 4.7
 RONW (%) 3.3 3.9 5.4
 Count of Cos. 30,466 29,959 11,603
Non-financial Companies
 Income 8.6 14.1 -2.9
 Expenses 8.8 14.3 -2.3
 Net profit -10.3 21.3 -22.4
 PAT margin (%) 2.7 3.0 3.6
 Net fixed assets 7.2 5.5 12.0
 Net worth 5.9 8.0 1.7
 RONW (%) 5.5 6.5 6.4
 Debt / Equity (times) 1.0 1.0 0.9
 Interest cover (times) 2.1 2.3 2.4
 Net working capital cycle (days) 79 72 61
 Count of Cos. 24,480 24,021 8,388
Numbers are net of P&E
Updated on: 05 Mar 2021 8:23AM