Fiscal deficit may overshoot budget estimates in 2020-21: Economic Survey

NEW DELHI: India's fiscal deficit is projected to overshoot the initial estimates, 3.5% of GDP, in the financial year ending in March, the government said in an

Economic Survey

presented to

Parliament

on Friday.


"In order to sustain the recovery in aggregate demand, the government may have to continue with an expansionary fiscal stance," the report said, adding the growth recovery would facilitate buoyant revenue collections in the medium term and enable a sustainable fiscal path.

Union Budget 2021-22: Complete coverage
The survey, which comes just ahead of the

Union Budget

for the new fiscal year that finance minister Nirmala Sitharaman is set to present on Monday, also forecast a "V-shaped" economic recovery.