States fiscal deficit seen spiking to historic high of 4.7%: CRISIL study

The combined fiscal deficit of the States will hit a peak of ₹8.7 lakh crore or 4.7% of their GDP this fiscal on the back of steep fall in tax collections due to disruptions inflicted by the pandemic, according to a report. Revenue of the States have so badly fallen that as much as 70% of the fiscal deficit is contributed by revenue deficit, which normally used to be only around 15%, a CRISIL study said on Wednesday.