{"id":150347,"date":"2021-12-02T20:25:52","date_gmt":"2021-12-02T14:55:52","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=150347"},"modified":"2021-12-11T17:29:08","modified_gmt":"2021-12-11T11:59:08","slug":"on-union-government-accounts-growth-spending","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/on-union-government-accounts-growth-spending\/","title":{"rendered":"On Union government accounts &#8211; Growth spending"},"content":{"rendered":"\n<p><strong>News:<\/strong> Union government accounts for Q2 of 2021-22 were released.<\/p>\n<p><strong>What does the report say?<\/strong><\/p>\n<p>It showed that the government has a comparatively <strong>better fiscal position due to<\/strong> <strong>better revenue collection. <\/strong>Total revenue receipts were over 70% of the budget estimate.<\/p>\n<p>&#8211;<strong>Higher nominal growth<\/strong>, will also expand the economy and help contain the fiscal deficit as a percentage of GDP.<\/p>\n<p><strong>GDP<\/strong> in real terms, though increased, is still not at par with the pre-pandemic level. Similarly, <strong>Private consumption<\/strong> is still lower.<\/p>\n<p><strong>What are the challenges ahead in the way of fiscal consolidation?<\/strong><\/p>\n<p>-Overall <strong>expenditure is less<\/strong> than the last fiscal year. Similarly, the<strong> capital expenditure<\/strong> is also less and reached only 45.7% of the budgeted amount. For the economic recovery, the government needs to push the capital expenditure up.<\/p>\n<p><strong>Additional expenditures<\/strong> will push up the fiscal deficit, such as<\/p>\n<p><strong>-Food subsidy bill<\/strong> increased due to the extended distribution of <strong>free food grains<\/strong> till March 2022.<\/p>\n<p>-As the rural<strong> job guarantee programme funds(MGNREGA)<\/strong> have been exhausted, the government needs to significantly increase its allocation.<\/p>\n<p>-Also, the government has to fund additional <strong>fertiliser subsidies<\/strong> and pay <strong>arrears for export incentives<\/strong>.<\/p>\n<p><strong>Source:<\/strong> This post is based on the article \u201c<strong>Growth spending<\/strong>\u201d published in <strong>Business Standard<\/strong> on 2nd December 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>News: Union government accounts for Q2 of 2021-22 were released. What does the report say? It showed that the government has a comparatively better fiscal position due to better revenue collection. Total revenue receipts were over 70% of the budget estimate. &#8211;Higher nominal growth, will also expand the economy and help contain the fiscal deficit&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/on-union-government-accounts-growth-spending\/\">Continue reading <span class=\"screen-reader-text\">On Union government accounts &#8211; Growth spending<\/span><\/a><\/p>\n","protected":false},"author":10335,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,507,10525,8942,216,1036],"class_list":["post-150347","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-economic-reforms","tag-fiscal-consolidation","tag-fiscal-policies","tag-gs-paper-3","tag-national-income","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700201071},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/150347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10335"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=150347"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/150347\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=150347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=150347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=150347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}