BANKING AFFAIRS

Detailed explanation-1: -Total expenditure during 2018-19 is estimated to be over Rs. 24.42 lakh crore. Fiscal Deficit at 3.3% is expected to be Rs. 6, 24, 276 crore, to be financed through borrowings.

Detailed explanation-2: -The Finance Minister further stated that the fiscal deficit is estimated to be 5.9 per cent of GDP in BE 2023-24. To finance the fiscal deficit in 2023-24, the net market borrowings from dated securities are estimated at Rs. 11.8 lakh crore.

Detailed explanation-3: -During 2018-19 also, fiscal deficit of states continued to remain below 3.0 per cent of GDP. Debt has risen persistently since 2015-16, led by restructuring of power sector through schemes like UDAY. As per budget estimates for 2019-20, states’ fiscal deficit is projected at 2.6 per cent of GDP.

Detailed explanation-4: -Formula for Calculating Fiscal Deficit Fiscal Deficit = (Revenue Expenditure + Capital Expenditure) – (Revenue Receipts + Capital Receipts). The formula reads out in the simplified form as-. Fiscal Deficit = Total expenditure-Total receipts excluding borrowings.

Detailed explanation-5: -The fiscal deficit or the gap between expenditure and revenue for 2022-23 is estimated to be Rs 16, 61, 196 crore. The country’s fiscal deficit was projected higher at 6.9 per cent for 2021-22 as against 6.8 per cent estimated earlier.