It's unlikely that govt may need additional borrowing: Finance secretary

India's GDP for April-June quarter of FY23 (2022-23) grew in double-digits at 13.5 per cent on year-on-year basis, and observed a growth of "3.8 per cent over Q1 of FY 2019-2020."

Commenting on the first quarter GDP figures, finance secretary, TV Somanathan said that the current figures are consistent with the assumption of a GDP growth in the range of 7-7.5 percent for FY23.

He also said that the government is on course of meeting its capital expenditure target for the fiscal and the government may not require to borrow more than originally planned. "I think it is unlikely that any adjustment to the borrowing figure for the second half of the fiscal would be needed," Somanathan stated.

The government has continued to support the investment activity with capital expenditure reaching Rs 1.75 lakh crore during Q1 of 2022-2023, which is 23.4 per cent of the Budget Estimate (BE) and 57 per cent higher as compared to the corresponding period of last year.

Commenting on the comparison of GDP estimates between last quarter of fiscal year 2022, and first quarter of fiscal year 2023, Somanathan said that as per the trend observed, data for first quarter (Q1) is always less than the fourth quarter Q4 of previous year. As per official data released, GDP in Q4 of FY 2021-2022 stood at Rs 40.78 lakh crore, which declined to Rs 36.85 lakh crore in Q1 FY 2023, he added.

As per the data, Gross Value Added (GVA) grew by 12.7 per cent to Rs 34.41 lakh crore in April-June this year. The GVA growth in the farm sector is 4.5 per cent in the first quarter compared to 2.2 per cent a year ago.

However, the GVA growth in the manufacturing sector decelerated sharply to 4.8 per cent during the quarter from 49 per cent during the year-ago period. GVA growth in mining is 6.5 per cent in the quarter compared to 18 per cent. The GVA in the construction sector also decelerated to 16.8 per cent in the quarter from 71.3 per cent.

The electricity, gas, water supply and other utility services segment grew by 14.7 per cent in the quarter compared to 13.8 per cent a year ago. GVA growth in the services sector -- trade, hotel, transport, communication and services related to broadcasting -- was 25.7 per cent during the first quarter against 34.3 per cent.

Financial, real estate and professional services grew by 9.2 per cent in the first quarter over 2.3 per cent earlier. Public administration, defence and other services posted 26.3 per cent growth against 6.2 per cent in the first quarter of last fiscal.
 

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