NEW DELHI: Growth in the country’s core sector rose to a three-month high in Feb, led by double-digit expansion in three of eight segments but the fertiliser sector contracted for second consecutive month.
Data released by the commerce and industry ministry on Thursday showed the infrastructure sector, spanning coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity rose an annual 6.7%, higher than the 4.1% in Jan but below the 7.4% in Feb last year.
The core sector accounts for 40% of the index of industrial production and has an important impact on the factory output numbers, which will be released later next month.
Separate data showed fiscal deficit reached 86.5% of the full year target at Feb-end. In the corresponding period last year, the fiscal deficit or gap between expenditure and revenue was 82.8% of the revised estimates (RE) of the Union budget for 2022-23. The govt estimates fiscal deficit at Rs 17.4 lakh crore or 5.8% of GDP.
“The surge in the fiscal deficit in Feb (Rs. 4.0 trillion, vs. Rs. 2.6 trillion in Feb 2023) can be partly attributed to the higher tax devolution released during that month (Rs. 2.1 trillion vs. Rs. 1.4 trillion in Feb 2023), which led to a decline in the revenue receipts and net tax revenues in that month,” said Aditi Nayar, chief economist at ratings agency ICRA. “In April-Feb FY2024, the net tax revenues rose by 7%, non-tax revenues expanded by 45%, amidst a mild 1% growth in revenue expenditure, and a robust 36.5% YoY expansion in capex. We do not expect the revised fiscal deficit target of Rs 17.3 trillion for FY2024 to be breached,” said Nayar.
Data released by the commerce and industry ministry on Thursday showed the infrastructure sector, spanning coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity rose an annual 6.7%, higher than the 4.1% in Jan but below the 7.4% in Feb last year.
The core sector accounts for 40% of the index of industrial production and has an important impact on the factory output numbers, which will be released later next month.
Separate data showed fiscal deficit reached 86.5% of the full year target at Feb-end. In the corresponding period last year, the fiscal deficit or gap between expenditure and revenue was 82.8% of the revised estimates (RE) of the Union budget for 2022-23. The govt estimates fiscal deficit at Rs 17.4 lakh crore or 5.8% of GDP.
“The surge in the fiscal deficit in Feb (Rs. 4.0 trillion, vs. Rs. 2.6 trillion in Feb 2023) can be partly attributed to the higher tax devolution released during that month (Rs. 2.1 trillion vs. Rs. 1.4 trillion in Feb 2023), which led to a decline in the revenue receipts and net tax revenues in that month,” said Aditi Nayar, chief economist at ratings agency ICRA. “In April-Feb FY2024, the net tax revenues rose by 7%, non-tax revenues expanded by 45%, amidst a mild 1% growth in revenue expenditure, and a robust 36.5% YoY expansion in capex. We do not expect the revised fiscal deficit target of Rs 17.3 trillion for FY2024 to be breached,” said Nayar.
We also published the following articles recently
Expansion spree: Tatas Taj signs a hotel a week this fiscal
Taj Hotels and IHCL rapidly expand portfolios post-pandemic, signing weekly and launching numerous properties. The group ventures into international markets and upscale offerings, aiming for continued growth domestically and internationally.
Taj Hotels and IHCL rapidly expand portfolios post-pandemic, signing weekly and launching numerous properties. The group ventures into international markets and upscale offerings, aiming for continued growth domestically and internationally.
UP taking Udyam route to trillion dollar economy
Yogi Adityanath-led BJP govt in UP emphasizes industrial growth through various projects like mobile manufacturing unit, data center, and bottling plant. Investments in renewable energy, food processing, and real estate sectors also contribute to economic development.
Yogi Adityanath-led BJP govt in UP emphasizes industrial growth through various projects like mobile manufacturing unit, data center, and bottling plant. Investments in renewable energy, food processing, and real estate sectors also contribute to economic development.