Fiscal Deficit and GDP: 10 year India and Global Comparative

Fiscal Deficit and GDP: 10 year India and Global Comparative

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As Governments across the world grappled with COVID, the rules of the game had to change. The prudence of balancing incentives to revive GDP vs keeping Fiscal Deficit benign, wasn’t the paradigm anymore. India’s FY21 projected Fiscal Deficit of 9.5% was historical but so was the steep dip in GDP growth of -7.7%. Its the same story across the world.

We crunched the numbers over the last 10 odd years and see how the otherwise stable graphs for most of the countries see a huge blip in these times. Ironically while, some of these trends almost looked like birds, snakes and more (subject to your imagination), the real animal spirit had waned.

We hope 2022 brings the best in us, taming the unpredictability but fuelling the revival of the spirits.

*Do note the methodologies and inclusions on Fiscal/Budget deficit vary across the world. 

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