How much percentage is the Fiscal deficit target of the GDP in 2020-21?
A. 3.0%
B. 3.9%
C. 3.2%
D. 3.5%
Answer:D
How much percentage is the Fiscal deficit target of the GDP in 2020-21?
A. 3.0% B. 3.9% C. 3.2% D. 3.5%
Explanation: Finance minister Nirmala Sitharaman in her Budget 2020 speech proposed reducing fiscal deficit by 30 basis points to 3.5% of GDP in 2020-21. Sitharaman invoked the escape clause to take a 50 basis points leeway in the fiscal deficit number for 2019-20, taking the revised estimate to 3.8% of the GDP. Moody's Investors Service said the Indian government will face challenges in achieving its fiscal deficit target for the year ending March 2021 amid persistent structural and cyclical headwinds to growth.