Govt depends on expenditure rationalisation to rein in fiscal deficit to 3.4% of GDP in FY18

Rs.500 bln allocation to FCI reclassified as way and means advance

by Nidhi Bhati

The central government has managed to rein in fiscal deficit at 3.4 per cent of GDP in 2017-18, lower than the revised estimates (RE) of 3.5 per cent owing to expenditure rationalisation, as per a report in Business Standard. With the RBI transferring Rs.100 billion in surplus to the Centre and the Food Corporation of India (FCI) returning Rs.500 billion to the ministry of finance, the fiscal deficit was brought down in March 2018, according to a government official [see here]. The Rs.500 billion allocation to the FCI was initially classified as capital expenditure. But, later it was reclassified to a ‘way and means advance’ which needs to be returned within a financial year. Hence, the expenditure at the end of March 2018 will show a reduction by a similar amount. Additionally, the ministry of finance expects Rs.200-300 billion in unspent allocations being returned by various central government departments.

References
1. http://www.business-standard.com/article/economy-policy/reclassification-helps-govt-rein-in-fiscal-deficit-to-3-4-of-gdp-in-fy18-118041400849_1.html
CMIE STATISTICS
Unemployment Rate
Per cent
6.0 -0.1
Consumer Sentiments Index
Base September-December 2015
93.3 0.0
Consumer Expectations Index
Base September-December 2015
93.3 -0.3
Current Economic Conditions Index
Base September-December 2015
93.2 +0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.33 1.38 1.23 2.16
Completed projects 0.87 1.21 1.02 1.07
Stalled projects 2.67 0.69 0.93 3.34
Revived projects 0.23 0.34 0.23 0.14
Implementation stalled projects 0.73 0.73 0.58 1.05
Updated on: 27 Apr 2018 9:20AM
Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 9.6
 Expenses 9.9 9.0 12.9 13.1
 Net profit -19.9 -18.1 -13.9 -12.1
 PAT margin (%) 5.3 5.5 4.9 11.2
 Count of Cos. 4,483 4,470 4,433 119
Non-financial Companies
 Income 10.2 8.2 13.2 6.6
 Expenses 10.5 8.2 12.3 7.9
 Net profit -25.1 -6.0 12.7 -1.1
 PAT margin (%) 5.2 6.2 6.4 12.6
 Net fixed assets 9.2 10.1
 Current assets 78.7 6.6
 Current liabilities 11.0 20.8
 Borrowings 10.4 4.3
 Reserves & surplus 5.2 0.2
 Count of Cos. 3,461 3,444 3,430 86
Numbers are net of P&E
Updated on: 27 Apr 2018 9:20AM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.5 1.5 5.1 1.6
 Expenses 5.6 1.7 5.1 0.7
 Net profit 0.0 -10.3 23.7 9.2
 PAT margin (%) 3.1 2.8 3.6 8.3
 Assets 9.5 10.0 6.9 3.3
 Net worth 8.5 11.4 6.0 2.8
 RONW (%) 5.8 4.9 5.9 12.7
 Count of Cos. 25,647 23,668 20,755 19
Non-financial Companies
 Income 4.7 0.6 4.7 1.5
 Expenses 4.9 0.0 5.2 0.6
 Net profit -8.6 18.4 18.0 10.7
 PAT margin (%) 2.0 2.5 3.1 7.4
 Net fixed assets 13.3 17.3 5.4 4.4
 Net worth 6.9 12.0 4.4 2.9
 RONW (%) 4.6 5.1 6.0 11.5
 Debt / Equity (times) 1.1 1.1 1.0 0.2
 Interest cover (times) 1.9 1.9 2.1 11.8
 Net working capital cycle (days) 66 65 62 38
 Count of Cos. 20,897 19,807 17,287 17
Numbers are net of P&E
Updated on: 18 Apr 2018 11:50AM

Time series available from 1990 onwards