Page 54 - economic_survey_2021-2022

28 Economic Survey 2021-22

Figure 27: Surplus in BoP Figure 28: Forex reserves and Import Cover

6
FER Import Cover-RHS
700 20
5 16

US$ BIllion 4 3 600 12

2 US$ Billion 500 8 No. of months
400
1 4

0 300 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2019-20 2020-21 2021-22 (P) 2019-20 2020-21 2021-22 (P)

Source: RBI

1.32 India’s salient external sector sustainability indicators are strong and much improved as
compared to what they were during the global financial crisis or taper episode of 2013 (Table).
For instance, the import cover and foreign exchange reserves are more than double now. The
combination of high foreign exchange reserves, sustained foreign direct investment, and rising
export earnings will provide a good buffer against any liquidity tapering/monetary policy
normalisation in 2022-23 (details in Chapter 3).

Fiscal Balance
1.33 The fiscal support given to the economy as well as the health response caused the fiscal
deficit and government debt to rise in 2020-21. However, there has been a strong rebound in
government revenues in 2021-22 so far. The revenue receipts of the central government during
April- November 2021 have gone up by 67.2 per cent (YoY), as against an estimated growth of
9.6 per cent in the 2021-22 Budget Estimates. The tax collections have been buoyant for both
direct and indirect taxes (Figure 29. The gross monthly GST collections have crossed ` 1 lakh
crore consistently since July 2021 (details in Chapter 2).

Figure 29: Direct and indirect tax revenue Figure 30: Fiscal and Primary deficit

5 Apr-Nov 2019 Apr-Nov 2020 Apr-Nov 2021 Apr-Nov 2019 Apr-Nov 2020 Apr-Nov 2021
10.8
4
₹ Lakh Crore 3 2 ₹ lakh crore 8.1 7.0 6.9

1 4.7
0 2.4
Corporation Taxes on Customs Union excise Gross GST
Tax Income duties to the Centre
(other than
Corporate
tax)
DirectTaxes Indirect taxes Fiscal Deficit Primary Deficit
Source: Office of CGA Source: Office of CGA