The Reserve Bank on Wednesday expressed doubt over the government’s ability to contain fiscal deficit at the budgeted 6.8% this fiscal after it moved the second supplementary demand of grants worth ₹3.73 lakh crore which came in spite of a massive 83% jump in net tax revenue so far this year to ₹10.53 lakh crore.
The government has budgeted for total expenditure of ₹34.83 lakh crore or 6.8% of GDP.
While the net tax revenue rose from ₹5,75,697 crore in October 2020 to ₹10,53,135 crore till October 2021, total expenditure rose only by 9.95%, led by infra spending to ₹18,26,725 crore from ₹16,61,454 crore during the period, the RBI said in the financial stability report.
Total expenditure grew 9.9%, with capital outlay expanding 28.3%, the RBI said.
“But with the second supplementary demand of grants worth ₹3.73 lakh crore, presented in December, the budgeted fiscal deficit of 6.8% of GDP may come under strain,” the central bank warned.
Though the size of gross government borrowing has proceeded at a pace that suggests that budget estimates would be adhered to, RBI said the Centre’s repayment obligations indicate a significant uptrend going forward, implying that gross borrowing is likely to remain elevated, notwithstanding fiscal consolidation.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
