During the Union Budget in February, the govt had announced to relax the fiscal deficit target for 2020-21 by 0.5% making it 3.5% of the GDP. The states have also demanded to relax their targets to 4-5% to make some room to deal with the pandemic. This would need to amend the FRBM Act. However, due to strained govt. resources there is no broad proposal to do the same.
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