Fiscal deficit in the first half of the current fiscal stood at Rs 4.47 lakh crore, or 83.9 per cent of the budget estimate (BE) for the whole year. The fiscal situation in April-September deteriorated over the year-ago period as the deficit then stood at 68.1 per cent of the budget estimate of 2015-16. Fiscal deficit, the gap between expenditure and revenue for the entire fiscal, has been pegged at Rs 5.33 lakh crore, or 3.5 per cent of GDP, in 2016-17. According to data released by the Controller General of Accounts, tax revenue came in at Rs 4.48 lakh crore, or 42.5 per cent of the full year BE of Rs 10,54,101 crore.
India’s core sectors – coal, crude, natural gas, refinery products, fertilisers, steel, cement and electricity – rose 5 per cent in September compared with 3.2 per cent in August.
Data showed the eight core industries grew 4.6 per cent in the April-September period.
With a weightage of some 38 per cent of India’s industrial output, core sector index is seen as a barometer of how India’s industry is doing.
Steel was the best performer despite the downturn in the global market, reporting a 16.3 per cent growth, nearly as much as the 17-month high of 17 per cent reported in August.
Analysts said the range of tariff protection that India has given to the steel sector from dumping by Chinese and East Asian competitors helped.
“Steel growth shows that demand from downstream industries remains and that they are replacing imports with domestic production,” said Sudipto Bose, an independent steel sector market analyst.
The refinery sector reported the second highest growth rate at 9.3 per cent, while cement, which reflects on downstream construction and infrastructure, showed a 5.5 per cent growth.
However, electricity generation grew just 2.2 per cent while fertiliser grew 2 per cent. Three key sectors – coal, crude and natural gas – contracted. Coal output contracted 5.8 per cent, natural gas output shrank 5.5 per cent, while crude production contracted 4.1 per cent.
Highlights of the first look at US third quarter GDP. Oct 28, 2016
Q2 was at 1.4%
Personal consumption 2.1% vs 2.6% exp. Prior 4.3%
PCE 1.5% vs 1.4% exp.
Core PCE 1.7% vs 1.6% exp
GDP sales 2.4% vs 3.2% exp. Prior 1.3%
Employment costs 0.6% vs 0.6% exp. Prior 0.6%
Wages 0.5% vs 0.6% prior
Benefits 075% vs 0.5% prior
GDP deflator 2.2% vs 1.8% exp. Prior 0.4%. Revised to 0.5%
Exports 10.0% vs +1.4% prior
Imports +2.3% vs +0.2% prior
That exports number is a big outlier that could have skewed the numbers. There is talk that soybean exports threw off the trend and that might have been priced in. The inventory data is hotter than expected as well so this number really isn’t as good as it looks.