New Student Offer- Use Code HELLO

Register Now

RBI Report: States’ Gross Fiscal Deficit below Budget Estimate for 2nd Consecutive Year

Published on December 25, 2023
Current Context: According to the Reserve Bank of India’s (RBI) report titled, ‘State Finances: A Study of Budgets of 2023-24’, states have sustained improvement in their finances during 2022-23, with a combined gross fiscal deficit (GFD) at 2.8% of the gross domestic product (GDP).
RBI Report: States’ Gross Fiscal Deficit below Budget Estimate for 2nd Consecutive Year
  • This is below the Budget Estimates for the second consecutive year.
  • The deficit reduction was achieved primarily through a reduction in the revenue deficit while sustaining robust capital outlays.
  • The implementation of goods and services tax (GST) has led to increased tax buoyancy for the states.
  • States’ total outstanding liabilities are budgeted to fall to 27.6% of GDP for 2023-24 from the peak of 31% in 2020-211.
  • However, outstanding liabilities may remain higher than 30% of gross state domestic product (GSDP) for many states.

Question:

Q.1 What was the combined gross fiscal deficit (GFD) of the states for the year 2022-23?
a. 2.8% of GDP
b. 3.1% of GDP
c. 3.5% of GDP
d. 4.0% of GDP

Can I help you?

ramandeep singh

Hey I am Ramandeep Singh. I am determined to help students preparing for RBI, SEBI, NABARD and IBPS exams. Do you want me to help you ?

Join my class here
    Follow me:
Close Menu
Close Menu