Govt deficit, debt moderated in 2022-23: RBI


Govt deficit, debt moderated in 2022-23: RBI
The general government deficit and debt moderated to 9.4 percent and 86.5 percent of GDP, respectively, in 2022-23 from the peak levels of 13.1 percent and 89.4 percent in 2020-21 respectively, the Reserve Bank of India has noted in its annual report for 2022-23.
"While committing to credible fiscal consolidation, the government has led the revival in investment cycle through augmented capital expenditure, recognizing its multiplier effects by crowding-in private investment and lifting the economy's growth potential," it said while commenting on government finances.
Going forward, fiscal consolidation will need to be sustained to rebuild policy buffers and ensure debt sustainability, it underlined.
"Continued thrust on digitization could aid in greater formalization of the economy and thereby higher tax base, generating the necessary resources to undertake developmental expenditure," it suggested.
Source: IANS