Fiscal space available to push growth – 31 Jan 2022

The fiscal support given to the economy as well as to the health response caused the fiscal deficit and government debt to rise in 2020-21.

However, a strong rebound in government revenues in 2021-22 has meant that the Government will comfortably meet its targets for the year while maintaining the support, and ramping up capital expenditure

The strong revival in revenues (revenue receipts were up over 67 per cent YoY in April-November 2021) means that the Government has fiscal space to provide additional support if necessary

This is good news for all segments, as well as for the chemical and petrochemical sector, which according to data in the Survey shows a slow down in Q3 2021

This is what the Economic Survey, 2022 has to say