The Indian government has recently disclosed significant details regarding the fiscal deficit for the financial year 2022-23. During this period, the fiscal deficit reached 6.4 percent of the country's GDP. The Ministry of Finance, in its revised estimate, aimed to maintain the same fiscal deficit target. These figures were derived from government data released on Wednesday. Notably, the fiscal deficit in FY23 amounted to Rs 17.33 lakh crore, approximately 98.7 percent of the budget estimate. To bridge this deficit, the government sought to borrow funds from the market.
Budget Aligned with Expectations
In FY2023, the fiscal deficit reached 98.7 percent of the estimated budget. Moreover, the revenue deficit accounted for 96.2 percent of the projected amount, while the primary deficit represented 98.8 percent of the budget estimate. Interest payments aligned with expectations at 98.7 percent of the budget estimate, and capital expenditure slightly exceeded projections at 101.2 percent. Additionally, revenue matched expectations at 100.5 percent of the budget estimate.
March's Fiscal Deficit Snapshot
For the month of March, the fiscal deficit amounted to Rs 2.79 lakh crore, marking an increase compared to the previous year's figure of Rs 2.67 lakh crore. The revenue gap expanded from Rs 1.46 lakh crore to Rs 1.64 lakh crore on an annual basis. Tax revenue experienced growth from Rs 4.34 lakh crore to Rs 5.06 lakh crore, while revenue spending rose from Rs 5.43 lakh crore to Rs 5.49 lakh crore.
GDP Growth Rate in FY2023
The government has released the GDP growth data for the fourth quarter of FY2022-23. Notably, India's economy displayed a growth rate of 6.1 percent in the January-March 2023 quarter, exhibiting improvement compared to the 4 percent growth rate in the corresponding quarter of the previous year. During the December quarter, the GDP growth rate stood at 4.4 percent. For the entire financial year, FY2023, the GDP growth rate amounted to 7.2 percent, surpassing expectations.
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