We have published our monthly report tracking Government finances. We track the key trends in Central Government finances as well as that for around 12-15 large State Governments. Reproduced below is a small excerpt from the report:

• Government Finances are in far better shape after the first 5 months of the year than anticipated. This is largely due to higher-than-expected tax revenues. In the first 5 months of the year, aggregate government receipts have grown almost 60% YoY. This growth is partly attributable to the favourable base of last year when revenues had shrunk sharply. That said, even when compared to the first 5 months of FY20, aggregate government receipts are 13% higher.

• Both Central and State Governments are spending on Capex. YTD (till August) aggregate Capital Expenditure of Central and State Governments has increased 40% YoY. And while the base was favourable, Capex in the first 5 months of this year is 16% higher than during the same period of FY20. However, revenue expenditure growth has been contained and this aggregate expenditure has grown in the mid-single digits YoY. Consequently, the combined fiscal deficit has fallen sharply. YTD (till August) combined Government deficit is slightly lower than during this period of FY20.

Subscribers can read the full report by following this link: https://indiadatahub.com/reports/downloadreport/FiscalMatters/