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GDP= Consumption + Gross Investment + Government Spending + (Exports- Imports)
GDP = C+I+G+(X-M)
GDP at factor cost = GDP at Market Price – (Indirect taxes – Subsidies)
Net Tax Revenue = Gross Tax Revenue (-) NCCD transferred to the National Calamity Contingency fund (-) States’ share
Total Revenue Receipts = Net Tax Revenue + Total Non- Tax revenue
Capital Receipts = Non- debt receipts + Debt Receipts
Total Receipts = Total Revenue Receipts + Capital Receipts+ Drawdown of Cash Balance
Financing of Fiscal Deficit : Debt Receipts + Draw-down of cash balance
Non- Plan Expenditure = Revenue Non- Plan Expenditure + Capital Non-plan Expenditure
Plan Expenditure = Revenue Expenditure + Capital Expenditure
Total Expenditure = Total Non-plan Expenditure + Total Plan Expenditure
Revenue Deficit = Revenue expenditure (-) Revenue receipts
Gross Fiscal Deficit is the excess of total expenditure including loans, net of recoveries over revenue receipts (including external grants) and non- debt receipts
Net Fiscal deficit = The gross fiscal deficit (-) interest payments
Net Primary deficit = Net fiscal deficit (– ) net interest payments
NCCD: National Council on Crime and Delinquency.
Unique features of Indian Economy:
a. India’s growth is driven by domestic demand – both consumption and investment.
b. Twin Deficit – Fiscal & Current Account
c. Supply constrained economy
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