National deficits as share of GDP in India FY 2010-2022, by type

In financial year 2021, due to the impact of COVID-19 on the national economy and extra public expenditure on healthcare and various social programs, the fiscal deficit rose to 9.5 percent. The revenue deficit was at 7.5 percent, effective revenue deficit at 6.3 percent, and primary deficit rose to 3.1 percent of India's gross domestic product (GDP). Fiscal deficit is the difference between the total income of the government and its total expenditure, while the revenue deficit occurs when realized net income is less than the projected net income. Effective revenue deficit is the difference between revenue deficit and grants for creation of capital assets. Primary deficit indicates a government's borrowing requirements, excluding interest.