India Q4 GDP Results: GDP Rises To 6.1%, Fiscal Deficit Narrows To 6.4% Of GDP YoY

India’s fiscal deficit for the previous financial year (FY23) narrowed to 6.4 per cent of Gross Domestic Product (GDP) year on year (YoY), as per data released by Controller the General of Accounts (CGA) on Wednesday.

New Delhi: The National Statistical Office (NSO) released Wednesday India’s Gross Domestic Product (GDP) data for the January-March quarter (Q4FY2023). Indian economy saw significant growth in the quarter, and performance that exceeded expectations. In Q4FY23, GDP growth is at 6.1 per cent compared to 4.4 per cent growth rate witnessed in Q3. Overall, the growth in FY23 fiscal is better-than-expected to 7.2 per cent. Street had expected a growth of 5.5 per cent during the 4th quarter.

India’s fiscal deficit for the previous financial year (FY23) narrowed to 6.4 per cent of Gross Domestic Product (GDP) year on year (YoY), as per data released by Controller the General of Accounts (CGA) on Wednesday.

The fiscal deficit also met the budget gap target, as per the data, aided by buoyant tax receipts and some fiscal headroom from lower payments.

Finance Minister Nirmala Sitharaman, while announcing the budget for the current financial year, had retained India’s aim to narrow the fiscal gap to 6.4 per cent of GDP from 6.7 per cent in the last financial year. The fiscal deficit target for 2023-24 was pegged at 5.9 per cent of the GDP.

India has set a target to further narrow the deficit for 2023-24 to 5.9 per cent and is aiming to reach a fiscal deficit level below 4.5 per cent of the GDP by 2025-26.

Unveiling the revenue-expenditure data of the Union government for 2022-23, the CGA said that the fiscal deficit in absolute terms was Rs 17,33,131 crore (provisional). The government borrows from the market to finance its fiscal deficit.

CGA further said the revenue deficit worked out to be 3.9 per cent of GDP, while the effective revenue deficit was 2.8 per cent of GDP.