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NSO: India’s GDP in Q1 FY22 Grow by 20.1%; Fiscal Deficit in April-July 2021 Reached 21.3% of BE

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EconomyAs per the data of the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), India’s Gross Domestic Product (GDP) in the first quarter of financial year 2021-22 (Q1 FY22) (i.e. April to June 2021) grew by 20.1 percent as compared to a contraction of 24.4 (-24.4) percent in Q1 FY21.

Key Points:

i.GDP Estimation in Q1 FY22:

  • GDP at Constant Prices (2011-12): It is estimated at Rs 32.38 lakh crore in Q1 FY22, as against Rs 26.95 lakh crore in Q1 FY21 (a growth of 20.1 percent).
  • GDP at Current Prices: It is estimated to be Rs 51.23 lakh crore in Q1 FY22, as against Rs 38.89 lakh crore in Q1 FY21 (a growth of 31.7 percent as compared to a contraction of 22.3 percent in Q1 FY21).

ii.GVA at Basic Price Estimation in Q1 FY22:

  • Gross Value Added (GVA) at Constant Prices: It is estimated at Rs 30.48 lakh crore, as against Rs 25.66 lakh crore in Q1 of FY21 (a growth of 18.8 percent).
  • GVA at Current Prices: It is estimated at Rs 46.20 lakh crore as against Rs 36.53 lakh crore in Q1 FY21 (growth of 26.5 percent).

iii.Pre Pandemic Level Comparison: The GDP growth in Q1 FY22 was 9.2 percent lower than in the Q1 FY20 (i.e. Prior to COVID-19 level) and the overall GVA in Q1 FY22 was 7.8 percent lower than the Q1 FY20.

  • It shows that the economy has still not recovered to the FY20 level.

iv.The Agriculture, Forestry and Fishing sector grew by 4.5 percent in Q1 FY22 from 3.5 percent in Q1 FY21.

Fiscal Deficit in April-July 2021 Reached 21.3% of Estimation

As per data released by the Controller General of Accounts (CGA), India’s fiscal deficit during April – July 2021 (i.e. the 1st 4 months of FY22) stood at Rs 3.21 lakh crore or 21.3 percent of the budget estimate (BE) at the end of July 2021.

  • The fiscal deficit for FY22 was estimated by the centre at Rs 15.07 lakh crore.

Indicators April-July 2021
 Total Receipts Rs 6.83 lakh crore/ 34.6% of BE
Expenditure Rs 10.04 lakh crore/28.8% of BE
Amount Transferred to State Govt as devolution of share of taxes Rs 1.65 lakh crore

Recent Related News:

The CGA’s revenue-expenditure data of the Union government for FY21 reported India’s fiscal deficit for FY21 at 9.3 percent / Rs 18.21 lakh crore of the gross domestic product (GDP), which is about Rs 27,194 crore lower than the Finance Ministry’s revised estimation(RE) of 9.5 percent.

About Ministry of Statistics and Programme Implementation (MoSPI):
Minister of State Independent Charge – Rao Inderjit Singh (Constituency – Gurugram, Haryana)

About Controller General of Accounts (CGA):

i.CGA, in the Department of Expenditure, Ministry of Finance, is the Principal Accounting Adviser to the Government of India.

ii.The Annual Appropriation Accounts (Civil) and Union Finance Accounts are submitted by CGA to Parliament under Article 150 of the Constitution.

iii.Current CGA –  Deepak Das (25th CGA, from August 1, 2021)