Delhi government’s fiscal deficit comes down, thanks to a change in the formula

Contact Counsellor

Last Updated27/03/2023

The Delhi government’s fiscal deficit saw a dip as it changed the formula used to calculate the deficit in the budget documents and Economic Survey tabled in the Assembly recently.

The government reverted to a formula used to calculate the deficit till 2018-19 and revised the deficit figures for all the previous years mentioned in the 2022-23 Economic Survey. As a result, the fiscal deficit figures for these years have decreased.
Fiscal deficit: The shortfall between the government’s total earnings and expenditure — is the chief measure of a State’s finances. A lower fiscal deficit is linked with better financial health.
The government went back to calculating fiscal deficit using the old formula after realising that the formula used for the years 2019-20, 2020-21 and 2021-22 was incorrect.

This is image title