Mumbai: A study released by the SBI Research said that the fiscal deficit of the country will touch 6.5% of the gross domestic product (GDP). The Budget Estimate (BE) was at 6.4%. Fiscal deficit is the difference between revenue and expenditure.
The fiscal deficit for the first quarter of FY23 (April-June) has reached 21.2% of the annual target. It was at 18.2% in the same period last financial year. India’s capital expenditure during the first quarter was 23.4% of the Budget estimate compared to 20.1% same period last year.
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‘Tax revenue has been robust with record high GST revenues which have been possible because of increased compliance and higher economic activity. On the expenditure side, Government has incurred higher capital expenditure which bodes well for our growth potential,’ the report said.
The trade deficit of the country has touched a record high of $ 31 billion in July. Trade deficit is the difference between imports and exports. India’s exports declined to $ 35 billion in July. Imports stands at $ 66 billion. Cumulatively, India recorded a trade deficit of USD 100 billion during the April-July period.
SBI research revised the Current Account Deficit estimates from 3.2% of GDP to 3.7% for 2022-23. CAD is the difference between a country’s export value in comparison to its imports.
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