CURRENT AFFAIRS

Detailed explanation-1: -The Revised Estimates for 2021-22 indicate a Fiscal Deficit of Rs. 15, 91,089 crore as against the Budget Estimates of Rs. 15, 06,812 crore. The Finance Minister stated that the outlay for capital expenditure in the Union Budget is once again being stepped up sharply by 35.4 per cent from Rs.

Detailed explanation-2: -The fiscal deficit has come down from a record 9.3% of GDP in 2020/21 due to expenses related to the pandemic, but at 6.4% of GDP by the end of the current fiscal year it would still be much higher than its historical range of 4%-4.5%.

Detailed explanation-3: -The combined Gross Fiscal Deficit (GFD) of the States, which increased to 4.1% of GDP in FY21, was brought down to 2.8% in FY22 PA. Given the geopolitical uncertainties, the consolidated GFD-GDP ratio for States has been budgeted at 3.4% in FY23.

Detailed explanation-4: -The Gross fiscal deficit (GFD) of states is budgeted to narrow to 3.4 per cent of gross domestic product (GDP) in 2022-23 from 4.1 per cent in 2020-21, helped by broad-based economic recovery and higher revenue collections, as per a Reserve Bank of India’s (RBI) report released on Monday.

Detailed explanation-5: -The projected gross primary surplus of Rs. 2,546 crore (0.2 per cent of GDP) in the budget estimates turned into a deficit of Rs. 20,645 crore (1.5 per cent of GDP) in the revised estimates (Appendix Table IV.