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Indian Economy Today there is a good news and a bad news. In fact, the fiscal deficit of the central government has reached 67.8 percent of the target for the entire financial year by the end of January. This information has been received from the official data released on Tuesday. According to data from the Controller General of Accounts (CGA), the fiscal deficit for the April to January period of the current financial year in real terms stood at Rs 11.9 lakh crore. The difference between expenditure and revenue is called fiscal deficit. On the other hand, the production of eight core infrastructure industries has increased by 7.8 percent in January 2023 as compared to the same period last year. This is its four-month high.
Economic growth slowed down to 4.4% in the third quarter
The country’s gross domestic product (GDP) growth rate has come down to 4.4 percent in the third quarter of the financial year 2022-23. The decline in GDP is mainly due to the poor performance of the manufacturing sector. This information was received from the data released on Tuesday by the National Statistical Office (NSO). Due to this, in the same quarter of the previous financial year 2021-22, the country’s economy had grown at the rate of 11.2 percent. At the same time, the economic growth rate in the July-September quarter of the current financial year was 6.3 percent. In its second advance estimate, the NSO has estimated the economic growth rate to be seven percent in the current financial year. Apart from this, the NSO has revised the growth rate for the last financial year 2021-22 from 8.7 percent to 9.1 percent.
Fiscal deficit stood at 58.9% in the corresponding period of last fiscal
Prior to this, the fiscal deficit in the same period of the previous financial year 2021-22 was 58.9 percent of the revised estimate of that year’s budget. The fiscal deficit target for the full fiscal year 2022-23 is Rs 17.55 lakh crore or 6.4 per cent of gross domestic product (GDP). The CGA data shows that the net tax collection in the first 10 months of the current financial year stood at Rs 16,88,710 crore. This is 80.9 per cent of the revised budget estimate for 2022-23. The net tax collection in the same period of the last financial year stood at 87.7 per cent of the revised estimate for 2021-22. The total expenditure of the government during this period has been Rs 31.67 lakh crore or 75.7 per cent of the revised estimate for 2022-23. Finance Minister Nirmala Sitharaman has set a fiscal deficit target of 5.9 per cent for 2023-24 in the budget presented in the Lok Sabha on February 1. The fiscal deficit target for the current financial year has been retained at 6.4 per cent of GDP.
Production of basic industries increased by 7.8 percent in January
The output of eight core infrastructure industries has increased by 7.8 percent in January, 2023 as compared to the same period last year. This is its four-month high. According to the official data released on Tuesday, this increase was registered due to better performance of coal, fertiliser, steel and power sectors. In the same period last year i.e. in January 2022, there was an increase of four percent in the production of basic industries. In December 2022, this figure was seven percent. Except crude oil, all the segments registered growth in production during the period under review. Crude oil production declined by 1.1 percent in January. Eight core infrastructure sectors – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity – are expected to grow by 7.9 per cent during April 2022 to January 2023. This figure was 11.6 percent in the same period of the previous financial year. The core sector or core infrastructure industries account for 40.27 per cent of the Index of Industrial Production (IIP) and are of considerable importance in terms of industrial production data.
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