Page 402 - ES 2020-21_Volume-1-2 [28-01-21]

State of the Economy 2020-21: A Macro View 29

elevated expenditures, as the Government enhanced spending during the unlock phase. During
April-December 2020 (Flash estimates), total non-debt receipts of Central Government fell by
4.7 per cent YoY. However, gross GST collections (Centre plus states) gained buoyancy October
onwards, crossing the ` 1 lakh crore mark consecutively for 3 months, thereby providing much
needed succour to the Government’s revenue position (Figure 30). However, on the states’
front, total receipts of state governments during April-October 2020, contracted by 13.7 per
cent. Total expenditure of the Central Government recorded a growth of 11 per cent during
April-December 2020 (Flash estimates), with capital expenditure growing by 24.1 per cent
and revenue expenditure by 9.2 per cent year-on-year. States, however, witnessed a contraction
in total expenditure by 4.1 per cent year-on-year during April-October 2020. While revenue
expenditure of states did not see any significant uptick during this period, growth in capital

expenditure of state governments emerged out of eight months of consecutive decline to record
positive growth in October 2020.

Figure 30: Trends in GST Collection during 2020-21
1.4
2020-21 2019-20
1.2 1.14 1.15
1.00 1.00 1.02 1.05 1.05
1.0 0.87 0.98 0.95 1.03 1.03
Rs Lakh crore 0.8 0.62 0.91 0.86 0.92 0.95

0.6
0.4 0.32

0.2

0.0
Apr May Jun Jul Aug Sep Oct Nov Dec
Source: Department of Revenue

1.34 The pandemic led receipts-expenditure wedge witnessed in this year has been bridged

mainly through additional market borrowing, as demonstrated in the revised borrowing calendar
announced by the Centre and higher market borrowing limits given to states. As on 8 January
th
2021, the Central Government gross market borrowing for FY2020-21 reached ` 10.72 lakh
crore, while State Governments have raised ` 5.71 lakh crore. While Centre’s borrowings are 65
per cent higher than the amount raised in the corresponding period of the previous year, state
governments have seen a step up of 41 per cent (Figure 31). Since the COVID-19 outbreak
depressed growth and revenues, a significant scale up of borrowings amply demonstrates the
government’s commitment to provide sustained fiscal stimulus by maintaining high public
expenditure levels in the economy.