Budget 2020-21: Maintaining the balance in the age of the COVID-19 pandemic


Photo: File Federal budget is a planning document used to prioritise expenditures, take into account revenue generation, and to maintain a balance between the two. When a country is engaged in an IMF programme, the starting point of budget making is usually the fiscal deficit agreed with the Fund. The revenues are inflated and expenditures deflated in a way that the balance does not exceed the number agreed with the IMF.