Financial Conditions snap shot

1. Central Govt. Finances: Apr.-Nov. 2017-18
Highlights:
Total receipts during April- October 2017-18 were at Rs.1292648 cr, (LY: Rs. 1150843 cr), 12.3% rise
over the same period last year. It was 60.2% of BE 2017-18. Out of which revenue receipts were at
Rs.728768 cr (LY: Rs.697988 cr), 4.4% rise YoY and Capital receipts were at Rs.563880 cr (LY:
Rs.452855 cr), 24.5% higher than the last year.
The revenue receiptsare notgrowingasexpectedandthe collectionsfromGSTwasmuch belowthe
expectations.To make upthe shortfall inrevenue receipts,the governmenthastoopt forincreasing
the capital receipts which had shown a good growth over the previous year.
Gross tax receiptwasatRs.973412 cr (LY: Rs.818884 cr),18.9% growthYoY. Nettax revenue retained
by the Central GovernmentwasatRs. 633617 cr, 19.5% higherthanthe last yearand itwas 51.6% of
the budget estimate for whole year.
Recovery of loans were at Rs.8394 cr, 5.7% higher than the last year.
Total Government expenditure from Consolidated Fund of India was at Rs. 1292648 cr (LY:
Rs.1150843 cr), out of which, revenue expenditure was at Rs.1129853 crore (61.5% of BE) and
capital expenditure was at Rs. 162795 cr (52.5% of BE).
Revenue Expenditure increased from the previous financial year by 10.1% and Capital Expenditure
increased by 30.3%.
Revenue deficit was at Rs. 401085 cr (LY: Rs.327896), 22.3% higher than the last year and it was
125% of total budget estimate. This is an area of concern.
Fiscal deficitwasat Rs.525321 cr(LY: Rs.423507 cr), 24% higherthanthe same periodlast year and it
was at 96.12% of BE. Consideringthatanother , four months to go , this will far exceed the budget.

2. Primary deficit was at Rs.267412 cr, 35.9% rise YoY. It was 1140% of BE.
Eight core infrastructure industries grew by 4.7 per cent in October 2017, as compared to 7.1 per
centin October2016. The growthof these industriesduringApril-October 2017 was 3.5 per cent, as
compared to 5.6 per cent during the corresponding period of previous year. In Dec, there was
traction and the expectations are that , the growth rate will rise. The forecast by various
international and domestic agencies indicate that the growth going for ward will pick up.
Foreign exchange reserves stood at US$ 400.7 billion as at end of 24th
November 2017 as compared
to US$ 370.0 billion at end March 2017.
The growth rate of IIP in Oct. 2017 was at (+) 2.2 percent. During Apr- Oct.17 the overall IIP
contracted by 2.5percent compared to growth of 5.5 per cent during same period last year.
Foreign trade: Merchandise exports and imports increased by 30.5 per cent and 19.6 per cent
respectively in US$ terms in Nov. 2017 over Nov. 2016. During Nov. 2017, oil imports increased by
39.1 per cent and non-oil imports increased by 14.6 per cent respectively over Nov. 2016.
Balance of Payments: India’s current account deficit (CAD) at US$ 22.2 billion (1.8 per cent of GDP)
in H1 of 2017-18 increased from US$ 3.9 billion (0.4 per cent of GDP) in H1 of 2016 -17. During the
H1 of 2017-18, the netinvisiblesbalance (invisible receipts minus invisible payments) was US$ 52.5
billion as compared to US$ 45.7 billion in the corresponding quarter of 2016-17. Net FDI inflows
during H1 of 2017-18 moderated to US$ 19.6 billion compared to US$ 20.8 billion in H1 of 2016-17.
Portfolio investment recorded a net inflow of US$ 14.5 billion during H1 of 2017-18 as compared
with US$ 8.2 billion in H1 of 2016-17. Net capital flows remaining higher than the CAD, there was
netaccretionto India’sforeignexchange reserves(onBoPBasis) tothe tune of US$ 20.9 billioninH1
of 2017-18 as compared with US$ 15.5 billion in H1 of 2016-17
External Debt:India’sexternal debtstoodat US$ 495.7 billionat end-September 2017, recording an
increase of 5.1 per cent over the level at end-March 2017. Long-term debt was US$403.0 billion at
end-September 2017 as compared to US$ 383.9 billion at end-March 2017.

3. Short-term external debt was US$ 92.7 billion at end-September 2017, as compared to US$
88.0billion at end-March 2017.
As per the estimates of Gross Domestic Product (GDP) for the second quarter (July-September)
2017-18, releasedbythe Central Statistics Office (CSO), the growth rate of GDP in Q2 wasat 6.3 per
cent as compared to the growth of 7.5 per cent in Q2 of 2016-17.