New Delhi: The estimated GDP face released by the National Statistics Office (NSO) on Friday will entertain the government on the two fronts.
Not only was it higher than the growth of Nominal GDP projected by Minister of Finance Nirmala Sitharaman in the last budget, but also gave him an additional head room of almost Rs 72,000 Crore to stay at the target of a fiscal deficit for this year.
Assuming 14.4% nominal growth (without inflation nets), FM estimates the economy to expand to Rs 2,22,87,379 Crore.
Advance Nso estimates that Peg GDP is nominal at RS 2,32,14,703 Crore.
“Estimates function as an important input for future budget exercises for the next fiscal.
The increase in nominal GDP at 17.6% provides additional expenditure spaces for the government.
According to the estimated Nominal GDP, the fiscal deficit budgeted for FY22 works to 6.5% of GDP.
disadvantage of disinvestment and additional demand for additional grants, the target of a fiscal deficit of 6.8% of GDP is likely to be achieved in TA22.
The increase in 17.6% GDP also produces substantial.
Decreased debt-to-pdb ratio, which is FRBM’s focus, “said M Govinda Rao, chief economist in Brickworks ranked and former member of the PM Economic Advisory Board.
While disinvestment receipts are expected to be lower than the estimated budget of Rs 1.75 lakh crore, tax revenues tend to be higher than the 17.9 lakh crore rs budgeted by Sitharaman.
Direct and indirect tax revenues have been stronger than those assumed by the budget team, behind economic recovery and hidden requests.
Even on non-tax income fronts, the mop-up of the RBI and several other sources will redeem gifts in telecommunications.