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There are three good news on the economy front. The central government’s fiscal deficit has narrowed from a year earlier, while core sector output has also grown year-on-year. Apart from this, the country’s foreign exchange reserves are at a 21-month high.
What is Fiscal Deficit?
At the end of November, the government’s fiscal deficit stood at Rs. 9.06 lakh crore, which is the largest deficit of the entire financial year. Budget This is 50.7 percent of the estimate. According to figures released by the Controller General of Accounts (CGA), the actual fiscal deficit in the April-November period of the current financial year 2023-24 was Rs. 9,06,584 crores. In the same period last year, the deficit was 58.9 percent of the 2022-23 budget estimate.
What was the government’s estimate?
The government’s fiscal deficit for the financial year 2023-24 is estimated at Rs 17.86 lakh crore or 5.9 percent of GDP. According to the information, the total expenditure of the central government in April-November 2023 will be Rs 26.52 lakh crore (for 2023-24). Budget 58.9 percent of the estimate). Out of the total expenditure Rs. 20.66 lakh crore in revenue account and Rs. 5.85 lakh crore was in the capital account. The government has set a target of bringing the fiscal deficit below 4.5 percent of the Gross Domestic Product (GDP) by FY 2025-26. Let us tell you that the difference between government expenditure and revenue is called fiscal deficit.
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Increase in foreign exchange reserves
According to data provided by the Central Reserve Bank, India’s foreign exchange reserves rose by $4.47 billion to $620.44 billion in the week ended December 22. This is the highest level in 21 months. The country’s foreign exchange reserves reached an all-time high of US$645 billion in October 2021.
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Core sector output increased
In the month of November, the production of 8 major sectors in the country increased by 7.8 percent year-on-year. This figure was 5.7 percent in the same period a year ago. In the month of November, the production of all sectors except crude oil and cement recorded a good growth. The major core sectors – coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity – grew at 12 percent in October. Production of coal and refinery products registered double-digit growth during November. Core sector output grew by 8.6 per cent in the first eight months (April-November) of the current fiscal, as against 8.1 per cent in the same period a year ago.