 वॉताध तो तुनासी। याल कि तुटित recommending चयनाप मगत्तिर मली तुटित आप ग़ोह क्या बजुत कयgunta देखार अन ठा exempel आयोग ब कoof विसकल पालसी के बारे में आज हम लोग बाथ करेंगे वोंटीस पिसकल पालसी यह हमने एस फेंक्टटेख्या देख़्ा शाँ जल्ग टिग़ित नहीं चानजी करे कफ़ा वो चित कि दूर यह बतलोग कर थारी, during the pandemic, when there was economic slow down right? यह पन्दमिक के आलावा मान लोग कोई भी और अगर क्रिसिस आता है in the time of crisis, any crisis, be it pandemic, be it a war or be it any other crisis, there is an economic slow down आपकी एकोनमी स्लो कर जाती है आप इस कर लोग को बीसग में और दो यह मकाता है इस नाडवामबिर्ठी की विष्कल पूलसी है and RBI यह आईगा पूलबिर्ठी पूलसी है तोभी जी भी आब पूलसी है सु इं दोनों पूलिसी के मदध से आपकी एकोनमी स्तबिलाईस हो सकती है अगर स्लोडाون है, तो एकोनमी ग्रो हो सकता है तीक है, तो इस तरीके से गवोमेंट और भी आई, पलेक्टिब ली, इंटर्वीन्स इन दब माक्निट, तो इसकी बिलोडा क्यो ये चाभ्तर में हो लन प्यट्मीट के मोडत्री कीपाटी व्ोमेंट के आई, किस पुरे पान्डमी के समए गवोमेंट मैं अपने प्यट्गटा के किस तरीके से एधजास्त कीः, और वोता हग्र बासिकले यह प्यटमी के इस्पूलिसी के है, तीक है, थीके सो यह आप स्थ में एंगे रपोरेट कबारेमे किस तरीके से अर्बरे रपोरेट को दिक्टीहुखी ती सो तारं लोु के लिओं पैसा लेना एजी होजाएAJ आप खहनस था कोनवी रेप्पिस आज हमेरोग अपने लेक्छटर में परहेंगे वोगत लिए आप स्विसकल पोलिसी और स्विसकल पोलिसी को किस तरीके से गबामांट ने एदज़स्त की आए इस पुरे पाँडमी किस समः तो अगब आप आप स्विसकल पोलिसी एखद आप पुए is विसकल पोलिसी वब बस्स्त्रट, वो बस्त्रट, क्या होता है? अआपको पता है कि जो गबेर्वेंट है. गबेर्वेंट है, यज ख़ब वनी बब प्रब और. यज ज़वाब मथ्स प्रब वनी बबबबबबबबबबबबब navigation's money. तीके. अपको बता है आड़ दूनिया में सारी सरकार जो है पैसा कचच करती है अब ये तुब जैसा है या तो वो ताक्स कलएक कर के लेगी या तो वो लोन लेगी या तो जो ताक्स पेर्स का मनी है या कमपनीज विस भीश को बेच के वहांसे जो पैसा राए है उस्तरीके से गवर्विएंट पाशा लग करती हैं और साथी साथ गवर्विएंट लों लेती हैं और इसकी च्रुएं क्या गवर्विएन्ट पाशा को बजट के से में ज्यों एक खएश भी आईश्चर हैं वो अपने बजट में बताते हैं कि किस तरीके से। आप चिरिट अब ज़्ों वीछिया интересरवास because. Money is also the government is intending to expend its money throughout the year, now all this tea is not whether in in the brain or body. धी ठोरा है। पर की प्स्कल और वलिस्पcool. अर्धी ढोगे उझलाजता दए बरदिद नके थागे कोन पूले endo reak及国 Kell pad rerethtoverle. तो लेओ खो mut so expansionarycieżes and second पूलिसी का मथलब जब गवर्वें जादा पासे करच करने को तग्यार है विल देगवर्वेंट विषेस तु श्पैंट मोर मनी दान ख़ब यप वह स्पैंटिं फो उईजामपा लगा नास टीर गवर्वेंट सोर पर करच करनी ती घब इकोनमे करो करही दी है अच्छे से तु फिष्ट्चार को पासे करच करने की जबवोत किए है यखो एकोनमे च च्लो कर रही है, इसको आगे देखे हैंगे हम ड़ब आब उसम्जो तो फिर सरकार को पासे करच करने की जरूवत क्या है यको एकोन्वी जब स्लो कर रही है इसको आगे दिखेंगे आमनों भट आभी समझों इत्मा एकोन्वी स्लोएग आँ मतलप कुछ इशु है एकोन्वी के साथ यहना प्रवेट पीपल इंवेस की कर रहे हैं असे इशु में प्रवेट पीपल तो इंवेस करेगा नहीं हम लोग दिमान करेगे नहीं तो उस केस में गबवामें पीख सलीट कि ठीक है See, I am going to invest now So that other people, other investors, private people get support, की हाँ गबवामेंट is spending That means, government is confident that economy will revive जब इकोन्वी आपकी स्लोडाون में होचुकी है लोगो का दिमाल कहतम होचुका है उस समें, सरकार अपने भुमिका को निभाडी है गबवामें पेखस ता फ्रंट गीर गबवामें पूशीज दगीर ता तो तरीज तो श्पन्ग ब्योर मनी इंट तो दे एकोन्वी So that, the private people also thinks that yes, गबवामेंट is spending, let us also invest तो गबवामेंट उस समें पैसे लेके रोड बनाएगी अब आप रोड नी बनाओगे, तो गबवामेंट रोड बनाएगी गबवामेंट पोट बनाएगी, गबवामेंट school बनाएगी, गबवामेंट hospital बनाएगी तेखे So when the economy is slowing down, under the counter-cyclical fiscal policy, the government spends more money, that is, इसके विप्रीत, the economy is slowing down, तो the government will spend more money. And if my economy is going at a good pace, then in that case, the government does not need to spend that much money. So in this case, अब आप आप आप आप आप आप आप, अप आप आप आप आप आप आप आप, अब आप आप आप आप आप आप आप, So whenever the government adopts these sorts of system, then it adjusts its fiscal policy. When the economy goes slow, it will do the same and when the economy moves up, it must contract. ईसक्हाँ गा नीज्डि के लफ कोचाख. When the economy goes slow, then one needs to spend more money, and when the economy moves up, then why is the government spending money. Because already private people are probably investing बिच्रिक्र यह तोग आप दिरेनी बिक्रागे जान्वाए में अगुयादगा , द्या बसन की आप पिष्कल अब प्लाँषी कि सु� mistre lhé maa haye maa haye m-a-boni-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a-in-a उसलोंगो कभीना कभी तो चुकाना भी पड़ेगा अच्छ भाई प्रिस्कल पूलिसी शुद भी क्यप या लिमिट, ये शुद ना एक स्पान तुमच तीख है, तो इसी लिए इसी लिए हड़ेग गबर्वामिट ने एड़ाब किया एक स्पानष्टरी पूलिसी इसकिया बहुत साथा प्यासा को स्पैन, इस्पैन दीछर को बरहाया गया गबर्वामिट का गबर्वामिट ने रोट्स बनाए, गबर्वामिट ने प्री में लोगो को फाना दीया आपक आपक Vielleicht कुछ था दीग हर उभगि láगि Fed ठी को छोग टरी खवतMan अप किनाडी गबर्वामिइट दीग दी� challenged में माब साथाे दीख तानौब. अपक राँने उसरया पिसकले कर४क अपक क हाई कर त짜 साथा दूरbl electrical Lot- अगर nerves ्वेauthor ् ठोडिरिंव Generally youReally तो policymakers तो those are ज़ंःंय कul आआँ has one ज़ुर इ� languages फुलो करो एकस खस्त्ट NOW..... प्रो उन्री और ठापूग बन portray you are supporting it भर चयिल ग्ता यहा बढाह फsacholglass न प्रो उन्री बेग छानिं� executed आज है न तो गला एकसाव हो इन है. 9 अपनॉचाँ में का रहा flame ौब यहा था.selling this and not wanting दो है. its destiny उखोन् मी खिर्र्ठं मेरा।PM नजा णोल्स Skezza डोल।PM मैंचा का्झा विक्ष्कलोण। वीग अख़्ित म począt किन वाडलिया देे खեո। van Air Em induction किन वीण खेख़ान लगी जित-ज Pictures haul गर आप दूगों इसी  सक्छा तो बरा還是 क्हो timeLOL lool lool lool lool lool lool lool यह ज़न्ली दो गववर्में पूलो सच्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च्च  bezel difficult to us, to make it easier for us to talk about what is fiscal policy,  fiscal policy is a use of government spending and taxation to influence the economy.  So government spending camp at the way the government spending more or less and taxation camp at the government increases the tax, so what tax government but highly, if the government increases the tax, it increases the tax and the tax increases the taxugi, that is economy is completely a shutdown, the economy is completely coming to a shut down, then the fiscal policy is becoming more important for the government. For example, when the economy has been slow down, the economy is closing, then what is government's responsibility that every people eat, what was government doing in this pandemic and under the Prime Minister Garip Kalyan Anna Yojna, government is distributing free food grades, यह सब कैसे होगा, गवर्वेंड आस तो सपने मोर मनी, अभी ना, तो इसले जब एकोनमी आपकी स्थन्स्टिल पे आचुकी है, एकोनमी आपकी रुक चुकी है, तो सकमे फिसकल पूलिसी बिकामस बेरी वेरी अन्स्ट्र्मेंटल, इन प्रवाइडिंगा सेफ्टी नेट त थो भी लिए लिए, त्रवाइडिंग का इकोनमी बूस्तिन दिमाण, अम लोगा दिमाण किसे बूस्त होगा, अद्स कट, अद्स कट कर दो, सो दे रिए, विड़ नितम होगा, आपकी पूलिसी पूलिसी बूल्गा, आपकी फिस्टीक अपहाँट विर्गे, because of that. And addressing certain supply side constraints through the public investment. Supply side constraints ka matlab, for example, pandemic ke same, agar kisi chiis ki supply nahi hopaari hai, to usko thiq karna. Isi liya government ne aapneer bharat ka scheme laaya. To address those structural supply side issues. Right. So, is tari ke se ekonomic crisis ke same, fiscal policy becomes the ultimate tool along with monetary policy. Do all these things. So, monetary policy indirect payment karta, fiscal policy direct payment karta hai. Because monetary policy se RBI ek tari ke se reporate ko bhatata hai. Okay, so that's an indirect way of reviving the economy. But this is a very direct way of reviving the economy. Government starts to spend more and more money. So, usko direct impact dekhne ko milta ekonomi mein. Is the fiscal policy becomes very, very important in the case of economic slowdown. Right. So, we'll try to understand this fiscal policy to government kitna ekstra karch kia. Aur kya government pandemic ke same karch kia. To ka aap government kama karch kar raha hai. Because zada karch nahi kar sate hum lo. Okay, chalo pandemic tha. So, that was the one of one event. So, there the government spend it. But now the pandemic is not there. So, now government should start to consolidate. Government should start to cut its spending. Because government is spending and government is taking more and more loans. So, that loans also needs to be repaid back in the future. That's why there's a limit on how much the government can spend. Okay. So, that's what we will understand that how much government spend it extra. Where did it spend it? Now what is the state? Kya abhi government cut down ki ki nahi ki? And what is the government target? For example, I was spending 100. Now during the pandemic, I spent 150. Now I started to spend. Ab hum mujhe plane ki baapas I have to get back to 100. So, when itless a lagin hum mujhe baapas se utne spending plane mein. So, all those things fiscal policy later on in this chapter mein pahenge. Okay. Plan sati saath we will try to understand the performance of union and state government finances. Because it is very important to understand. In this, basically, we will study how much money the government is spending. And where it is spending. This is why it is important that in fiscal policy, government is spending. And government will spend only when the government has more and more money. So, that's what we will understand. What is the government spending more money on? Because if the government is getting more money through tax collection and other things. So, government can spend more money. So, we will try to also understand how much government is getting the money. And where the government is spending the money. For example, I was spending 100. Now during the pandemic, I have started to spend 150. So, I am spending 50 rupees extra. So, the time of 50 rupees, I am spending on subsidies. Or whether I am spending that 50 rupees on creation of highway. Which is better, creation of highways. Capital expenditure is better than giving subsidies. So, that we will understand that where government has used that fiscal space. Where the government has spent that extra spending. And all those aspects will be covered in this chapter. So, first of all, we will try to understand the union government's finances. We understand the central government's revenue and expenditure. So, sustained revenue buy and see. Over the last two years, post the plummeting during the pandemic affected the Fy 2020. Fy 2021, that means 2020 to 2021. Because this was the year of the pandemic. And the whole economy had come on your slowdown. So, obviously government will not get much revenue. Because the corporate income will not be earned. People will not be earning income. So, where will we give tax? And if we don't give tax, then the government's revenue will be earned. But after that, 2021 to 2022. And in 2022 to 2022, the government's revenue has seen a lot of increment. So, during the pandemic, it is not going well. But now, it is increasing rapidly. And that is because the government has brought many reforms. Like the GST reform. Today, the GST collection is touching its record high. So, that's what. Digitalization of economic transactions. All the economic transactions are being done in digital way. It is very difficult to do tax generation. Faceless assessment and appeal. Today, tax harassment by income tax authorities is very low. We have seen trust based governance in the last lecture. Okay, then simplification of return filings. So, more and more people are filing their tax return now. Because of the simplification process. So, because of this overall, which is our revenue. Which declined during the pandemic. Now, since the past two years. It is increasing at a much more higher rate. So, the revenues have grown at a pace much higher than the growth in GDP is a testimony to the effectiveness of efforts taken by the government to expand the tax base and enhance the tax compliance. So, what is tax base? Tax base, what happens? Suppose, this is the base. For example, this is 1 lakh crore. This has to be taxed on 1 lakh crore. Tax base means, how much tax we will tax on income. Suppose, this year, 1 lakh crore total income people have earned. People, companies will tax on it. And next year, this tax base will be 2 lakh crores. Okay, so this is the base on which the tax is collected. So, this is nothing but the income generated by people, companies and everyone on which you will be taxed. And this tax base can only increase. How will the tax base increase? First, more and more people give the tax, tax evasion come over. Second, more people earn more income. So, it will depend on when the GDP will increase and the profit of the companies will increase. Third, the tax collection by income tax authority will also be much more efficient. Okay, so because of this, the government has reformed a lot. And that is why the tax collection in recent years has increased beyond what it was there for speed up the pandemic. Now, we will read about tax revenue receipts one by one. But before that, we will read about receipts, expenditure and other things. But before that, we will look at the basics here. So, if we look at the budget of any year, then there are basically 2 things in the budget. Your revenue account and your capital account. So, on any budget, there are 2 things, revenue and capital. Now, what will happen in revenue? One is revenue receipts and revenue expenditure. Similarly, in capital, your capital receipts and capital expenditure. Okay, this is what happens. Revenue receipts and revenue expenditure. Capital receipts and capital expenditure. So, the government has these 4 things in general. So, what is revenue? As we saw in the balance of payment. Current account and capital account. So, in the current account, asset liability does not change. In the capital account, asset liability changes. Same thing is applied here also. In the revenue account, all those transactions come. All those transactions which do not affect the asset or liability of the government. Which do not affect the asset or liability of the government. Means, the asset or liability of the government does not affect anything. For example, the government gives salary to its officers. Okay, this is the government and this is the officer. He gave salary of 1 lakh. So, does the government have any asset created? No. Is there any liability created? No. So, where will the asset transactions be written? Revenue account. But suppose now the government has spent 1 lakh on creation of highways. He spent to make roads. So, where will the government asset be created? Where will the asset transactions be written? In the capital account. So, in the capital account, all transactions which affect the assets or liabilities of the government. Okay. So, all the transactions which change the assets or liability, they will be written there. And where the asset liability does not change, they will be written here. Okay. Now, okay. So, revenue account, capital account, asset liability changes. Where the government is not changing, they will be written here. Now, what is revenue receipt? What is the meaning of the receipt which comes to the government? This is coming to the government as money. And where is the expenditure government spending? Okay. So, what will come in revenue receipts? Means, which money comes to the government? With which the government's asset liability is not changing. Means, which money is coming to the government in a year? With which the money of the government is not affecting the asset or liability of the government. So, what is the money? Tax. The people who are paying the tax, the money which comes to the government. Okay. So, whatever we are giving the tax, the government is not changing the asset or liability of the government. Okay. So, that is the revenue receipts. Now, where is the government spending? The government is not changing the asset or liability of the government. Salary to all its employees. Tension. Right? So, whatever the spending is, the government is not changing the asset or liability of the government. But, grants given to the state. So, for example, the central government has given Rs. 1 lakh to the state in the MG Narega. Okay. The central government has transferred Rs. 1 lakh to the state as a grant for MG Narega. So, has the central government created an asset or liability? No. So, we will put it here. Okay. Okay. So, in this way, in this entire process, the change of the asset or liability of the government is not coming. The revenue receipts are coming. The expenditure receipts are spending. Now, capital accounts are coming. Now, what will happen here? The change of the asset or liability of the government. Now, where does the government receive the money from? These are the two ways. Non-debt or debt or expenditure. So, we always talk about capital expenditure. Like, making roads, spending on this, spending on ports, spending on hospitals, spending on this. What is happening to the government by spending all this? The assets are being created. The government has not created any asset in this. So, this revenue expenditure is not considered very good as compared to capital expenditure. Because, spending on capital expenditure is the benefit of our economy. If you are spending 100 rupees on revenue expenditure, the economy gains by 100. If you spend 100 rupees on CAPEX, your economy grows by 400. Okay. So, this is your capital expenditure. Now, we will talk about capital receipts. So, these are the two ways. Now, this is the money that the government is receiving. Okay. But, the government will receive the money. But, what will happen to the government? The asset or liability will change. Because, it is in the capital. Non-depth. Means, there is no debt on the government. What will happen to this? Your disinvestment. The government has sold PSU. Yesterday, the government has sold BSNL or BPCL. So, if the government sells BPCL, the government will get, suppose, 50,000 crores. So, the government will get the money. So, it receives the money. But, did the government lose the asset? Yes, the government had that asset of BPCL. Now, the government is losing that asset. So, such this investment, which receives the money, will be written in non-depth receipts. Similarly, recovery of loans. Okay. The government had given someone a loan. Today, the loan money has come back. Okay. So, in this way, in all these transactions, government's asset or liability is changing. Okay. Now, the debt. So, the government does not have to take the loan. Although, the government is getting the money. But, the government is losing the asset. So, the government is selling the money to its owner. But, the government is not taking the loan. But, in this, what is the depth? When the government takes the money from the market, market borrowings. So, the government has taken the loan of 1 lakh rupees in the government. Okay. So, the government got the money. But, did the government get the liability? Yes, because the government has to pay that. So, the government is also getting the money. So, what is the government creating? Liability. So, where will they add the debt receipts? Okay. So, you have to keep this concept clear. You have to keep this concept clear. The change of asset liability is not here. The change of asset liability is here. In this, there are two ways. Revenue receipts and revenue expenditure. Okay. Revenue receipts, the money that comes from the tax, and revenue expenditure, salary, pension, grants to the state. And, in the capital account, your asset liability is changing. Capital expenditure, the road railways to be made, that's a very good expenditure. Its economy returns to 4x. 4x. And, in the revenue capital receipts, non-debt or debt will come. Non-debt with disinvestment or recovery of loans or debt with market borrowings. Okay. So, what we call fiscal deficit, this is what happens here. This is my fiscal deficit. Okay. This is what we call fiscal deficit. In a year, the government will spend so much money. So, where will the loan come from? Where will the money come from? Okay. So, whatever government takes the money from the loan, in a year, where will it come from? Non-debt receipts, capital account. Because that is a government's liability. That liability comes on the government. So, that is fiscal deficit. And, when you talk about revenue deficit, then this is what happens. Revenue deficit is equal to revenue receipts minus revenue expenditure. How much government is receiving revenue, and how much government is doing revenue expenditure. So, that is, you will minus this. So, that is revenue deficit. Now, fiscal deficit has come. Okay. So, in this way, you should have some deficits in the exam. You should be here to know what are our deficits. Okay. So, if we look at the summary here, the first is my fiscal deficit. The fiscal deficit is equal to governments. Total borrowing. Okay. And then you have revenue deficit. So, revenue deficit is equal to received minus revenue expenditure. Okay. After that, you have an effective revenue deficit. So, effective revenue deficit is equal to revenue deficit minus grants given to state okay. Out of which out of which it creates capital expenditure. Okay. What is this understanding? First of all, your fiscal deficit is clear. Government is boring for a year. What is revenue deficit? Revenue received minus revenue expenditure. Okay. So, this is your revenue deficit. That is revenue received minus revenue expenditure. Generally, this should be zero percent. Generally, because it should not have deficit. Okay. But what is this? Government is getting money. And the government is spending. But where is the salary and pension on these things? Okay. Generally, here our deficit should not be because this is our committed expenditure. Government has to give salary to the government. So, if this deficit is then what will we have to do for this deficit? We will have to take loan again. That is why the government wants that the revenue deficit is zero. And whatever money we are taking is through the fiscal deficit. And we will spend extra money on capital investment and capital infrastructure. So, revenue deficit is equal to revenue received minus revenue expenditure. And the fiscal deficit is your income. And one is the effective revenue deficit. And one is equal to revenue deficit minus this thing. Okay. So, for example, suppose that the revenue deficit because what is our revenue deficit? Government has no asset liability change. But if you consider, the government had given 500 rupees to the state but the state has made it a highway of 200 rupees. Okay. That the government has given 500 rupees to the state and the state has made the highway of 200 rupees to the state so this asset was created but whose asset was created? The state was created by the center. So, because the central government too I have given 500 to the state so for that 500 there is no asset liability change with respect to me. But out of the 500 the state government has spent 200 rupees on creation of highways. So, in that case the asset has been created but not for the central government but for the state government. So, that is why when we calculate effective revenue deficit that is equal to revenue deficit minus grants given to the state out of which out of which the state creates financial expenditure. Okay. So, these three types of deficit you should be clear. fiscal deficit, revenue deficit and effective revenue deficit. Okay. One more thing you have to remember one is primary deficit. Okay. One is primary deficit. Okay. And primary deficit is equal to basically fiscal deficit interest payment interest payment on the past borrowing. Okay. So, primary deficit is equal to fiscal deficit minus interest payment on the past borrowing. Means, if you we are talking about 2023 the government has taken 1000 fiscal deficit. Means the government has taken so much money Okay. For example, I have taken 1000 rupees of loan in this year. But, with that money we will have to spend some money which we had not taken last year. Government takes every year its interest has increased. So, this year the government took 1000 rupees Okay. And this year the government will have to spend some money for the old borrowings. So, that is equal to 1200 rupees. Means the fiscal deficit the government takes loan to invest to build no hospitals to provide free food to provide schools to build roads. But, the fiscal deficit the government took some money from that the government had to give interest for the old borrowings. You would not have taken any loan on 2022 you would not have taken any loan on 2022 you would not have taken any loan on 2022 You would not have taken any loan on 2020 so, that is why the fiscal deficit basically tells how much effectively the government can spend in this year. So, the government is taking a loan of 1000 rupees but the government is not able to spend 1000 rupees because out of 1000 the government has to pay 300 on interest payment for its past borrowings. Last year's interest the government has to pay 300 on interest. So, effectively how much the government is left with 700. So, this is known as primary deficit this basically tells how much effectively the government can spend. How much effectively the government can spend on the economy. How much effectively the government can spend on the economy. So, this is basically primary deficit. So, this way the revenue deficit you understand fiscal deficit, effective revenue deficit and primary deficit. So, with this we will move to the now, in understanding things will be easier. So, let us first see now, we will see what we have read first of all, revenue so, what will be revenue in the revenue receipts on tax first, tax revenue receipts so, what is the first thing we will talk about the revenue account so, what will be the account revenue receipts, expenditure first, revenue receipts on tax revenue receipts so, on tax revenue receipts you see there are so many types of tax, GST is done corporate income tax 2021 में, on an average, सारे तक्स दिक्लाएं केते पान्डमें के सचने, भट सिन्स दें, because of the government, many steps which it has taken, now the tax has started to grow. तो इस तरीके से हमारा, growth in centers direct tax. अमारा, tax collection is increasing. That's a good thing. तो direct tax which broadly constitutes half of the gross tax revenue. बतद जो direct tax है, तो आपका क्या है, 50% है, total gross tax revenue का. आज लेजिस्टिट ता एर और एर गोताफ, 26% from april to november, इनेबल बाई कोरपरेट अन परसल इंखम, tax growth. तो जो अमारा ये देखो 26% कितना होगया, 52% बाखी तो ये सब इंदरेक तक्स है. ये direct tax कितना है, 50% है, तो सवर पैजो, tax collection होता है, उस में लगबक 50 रुपीज, direct tax होता है, 50 रुपीज, indirect tax होता है, half-half. और सब से जाड़ा उक अंदिविज्योल किस तक्स का शेर है, तो वो है GST का. अगे ने वो अथाइस परसल पुषन पुषन पुषन करता है, और 50-50 तोनो direct-indirect करतिओट करते है, चेखे. चेखे, now, अब indirect tax में आज़ो, तो indirect tax में आप दिख में आप दिख है, अगे दिख हो पान्टमी के समें, यह हमारा दिकलाएं किया, अब आपका पान्टमी लिए दिगिरीज यहापे तो सब भेस अपक भी आप नहीं, आब यहापे दिख में बहुत सरे से च्तिः सलिए की, अज जियस्टी काफी स्तेबिलाएक रहै, अज जिव्स टी आज़ ताएख निर वह दिख में जियस्तो, अब वर लग करोर से, आप यहा दिख में आप दिख में आप निर रहीग भी तक्स. ब्री गूट, ताक्स. अव्या धेखो, आप गिए जीच ती टीटिह अप य्टी अप एंध़्ेक टीटित के लिस्टान, आमिज़ा पेख तर्म सुनो गर ताक्स बैंऽी क्या, णोदा है, एक अड़िय ती टाक्स बिरी खॉकच से बने जीडिक, उगर अखा तक जीदीपी इंके इस सबोस असी कला़षी का तक जीदीपी धीश कर रहा है. तो मत टब पीपेल भी ली फिररी यी बी आग़, तक पहने अडीच करती पीपी हो आग़् इन की है. तो क्या हुउईं कि तस्चबाशिन Bureau Payah Gross because there is the GST indirect tax due to this, the おす slavery tax it is at a much higher rate than the growth in the GDP Perché? । । । । । । । । । । । what is non tax receipts so non tax revenue receipts usme kya aayega amara dividends from the PSUs and RBI so amre baat kya tha revenue receipts or revenue expenditure so revenue receipts me ek hota tax or ek hota non tax so tax jo noob tax bharthe or non tax kya aayega dividends matab jo profit PSUs dethe RBI dethe government ko so dividends, interest receipts jo sarkar ne loan dera khayega uslain to jo loan pe interest aayega government ko sati sa external grants jo bahar ke countries India ko grant dethe so yeh sab ho gya amara revenue receipts ke baare me ab aajya kapital receipts me to receipts me do hota en debt or non debt so non debt capital receipts me ye hoga or debt capital receipts matab aayega waayi fiscal deficit ho gya hi amara aur deko fiscal deficit ka ye graph hai aur primary deficit ka ye graph hai dikhro ki pandemic seme hamara fiscal deficit kitna ho gya 9.2 but now it is declining aur 2023 ka target kitna hai 6.4% of GDP a 6.4% of GDP hai aur yeh target kitna hame matab yeh 9.2 to bahar ha but what is our target it is our target is ki fiscal deficit should reach 4.5% of GDP by 2025-2026 yeh hamara target hai issu wo kateh fiscal consolidation ki sarkar ne pandemic seme bohzata karche kia but now gradually when economy revive kar rahi hai economy is moving so now the time has come that government should cut down on its spending and what is the government game plan the government's game plan is to reduce that thing to 4.5% of GDP by this year so this process is known as fiscal consolidation this is known as fiscal consolidation take care so government is on the track to achieve the fiscal deficit target for f by 2023 so government is on the track to achieve the fiscal deficit target for f by 2023 kitna hai 6.4 hain hain hain aur yeh kyu ho pa rahe hain fiscal performance aapcha kyu ho rahe hain hain because economy fiscal performance hain hain hain hain hain hain hain fiscal is consolidating ekstra karche kateh now it is consolidating by because of the recovery in economic activity tax buoyancy because of GST and other things from direct tax and GST and realistic assumptions in the budget realistic assumptions ka matlab ki budget kum ne kuch budget assumptions hai kitna paisa aayega usko real rath hai nahi toh kar sarkar sochi yeh 100 rupees aayega but aaraya 50 rupees toh se miscalculations ho jaateh isli you have to be very realistic in your assumptions in the budget so government has been doing that so yeh ho gaya hain hain hain hain hain receipts ka paisa aane ka ab diktanu government paisa kharch kaha kar rahe hain hain hain hain hain so counter-cyclical fiscal policy yeh humne baat kar raha ka what is counter-cyclical fiscal policy it is measures to support the economy during the crisis led to rise in expenditure sahi baat hai pandemic ke same government hain counter-cyclical kia jiski meh je sarkar ko zyada kharch karna paisa karna para so that led to a rise in the expenditure but the quality of spending has improved lekin sarkar ne extra paisa toh kharch kia but taha kharch kia boha ke boh kaya raha hai ki the quality of spending has improved humne last class meh baat kia tha negative shift hai le government was spending more on the government took loan and spend on subsidies but this time the government is taking loan but it is not spending on subsidy rather it is spending on capital expenditure is the day ko aap ke pass union government capital expenditure to GDP ratio hai it is constantly increasing aap deko yeh pandemic kia rahe hain uske baat se yeh aap ko constantly bhar raha hai so now government jyada paisa toh le rahe hain lekin government usko road, railway, highway, hospital bharan mein kharch kar rahe hain so yeh tii khain yeh bhi deko rising share of the capital expenditure and the total expenditure so total expenditure ka 20% of government kaha kharch kar rahe hain capital expenditure par hai deko 12% kar thi thi so this has been a huge structural shift so the problem is not with government taking the loans government can take the loan but where you are spending your loan that is very important so you should spend that thing on capital infrastructure not on giving freebies to people now relevance of capex capex ka relevance kia deko it strengthens the aggregate demand demand bharega and crowds in the private spending which the private people are not ready to invest but when the government spends private people help find yes government is there to support us government is spending let us also come and invest so private people's ka jo reluctancy hain invest karne ka bo khatam ho jaata hain and they also crowd in bo aa jaata hain investment ke cycle mein it enhances the longer term supply side productivity capacity bata bo bhi sabate boh hain so many supply chain ke bottom next thin government because of extra spending thik karthi hain so supply side constraints hain production ko leke and a mineral's ka mining coal and other things so supply side issue hota hain usko bhi government is able to reforms also the center has nut the states to boost capex ye mnoh aage dekhenge ki center to kach kiki capex pe center ne kye bhi enchon kya ki states bhi capex pe kach kar rahe hain to ye aage dekhenge kya hain saokari ki asset best kriyate nahin roti hain salarvi, pension hogaen intres pay med pura ne loan ka intres de rahe ma ja subsidies hogaen defense services defense pension and other things like thik na so isbude there is no productive expenditure es expenditure sifut boh hain � 친16 अब यहात days n now govt. is cutting down its spending govt has consolidated it's fiscal space अब आप यह ख्छा आती पुच्छा तुश्बर्द तुश्डन बश्डन तुश्वल्द तुश्डन तुश्चवल्दा गजा तुश्चवल्ग आप बअदेखा will come down because government is going moving towards a fiscal consolidation so this was about the central government financing central government finances मैं मैं मैं मैं दो तीं चीस देखा एक तो tax collection कापी improvement किया है economy growth कर रही है ये इसकी वजे से जो our extra money खरछ हूँए ता pandemic के समें अप वो consolidate कर रहे है इसली हम लोग इस साल अपने fiscal deficit का जो target is 6.4% of GDP our target is 4.5% by 25-26% और जो भी हमने एकस्टा पैसा करछ किया but the quality of that is improved we have spread it more money on capital expenditure इसे जो finance का हलात है at the central level कापी थीक है now, if we analyze state government finances तो state government finances देखो क्या है अपका state government का जो consolidate क्या अबरज जीटी पी है fiscal deficit देखो है 3.4% तीक है और revenue deficit देखो आपका येवाला है तीक है तो ये भी गरत रहे है तो state का भी हलात थीक है आभी जोस आपका येवाल पर state government improve their finances in f by 2022 after being adversely impacted by the pandemic in f by 2021 तो अगें भाई state government का भी जो तोरसा पान्टमिक के समय देखो fiscal deficit भर गया था but now it is on decline state government finances भी आपके चीक है यहाप एक और जीज़नो को देखना है यहाप एक चीज़नो को और देखना है cooperative fiscal federalism drives a well targeted fiscal policy cooperative fiscal federalism drives a well targeted fiscal policy यहाप आम देखेंगे अिज़ी बास सब आब चीज़़ी ग़ा की लीग के मिं ला मब बा bathtub install improvement in the financial model यहग्छी किं। आमने ज़ा ठारगे के था अपनािसब obe ensure यहजी तो व symb च्वर्ठा।।安全 eliminate a any issues और GST आया उसके बात इंदारेत पाखसशेश्वन का जो पावर हैं तीके जो पैला आपक या सरभिस ताखस थकता ता ता तो उस वो पावर भी सेंट्सटेच का खतम हो गया वो पावर भी आपका आपका GST काँंसल के पास चला जया तो इसकी बज़़ से प्यनट्यलिशम में इशुज आँ सकते थे बत जो संटल दबववन्त है, उसने काफी अच्छे से इस प्यनट्यलिशम को मैनच की या है पहला, तम नो देखें किस तरीके से जीस्टी कमपन्सेशन के इशु अपने नाम नूस में सुना होगा उसको वि संटल गबववन में काफी अच्छे से रिजोलग की आच्छा और साती साती साते मैं देखा, कि सिस्टर गबवनं कापी अटिल अच्चमन नीचचाब से का फी ड़ाग है और साती सात नीचच्चमन के लग चोए भी आच्छोर किया है कि स्टेट गवर्मेंस को भी किस तरीके से, इंसेंटिवाइस किया जाए, प्रमोड किया जाए, कि वो भी अपना प्यासा कापितल एकस्पन्टीचा के तरव करच कर रही है, बिकोज आपको पता जैनली स्टेट गवर्मेंस, पासा करच करते है, नदरेग तक्सेशन का पावर था वो च्छ्छ गतम होगतें, अप च्छछ गब आप कुई पावर दिता कि वो अआविट दरेग तक्स लगा सकता है, because it is a lot of problems because first there was a new reform, new reform, the power of the state was finished. So the states got scared, what will happen tomorrow? We were collecting service tax and now GST could reduce its tax collection. So what ever I will do similarly the producing of the states, there is also loss because GST is a destination based tax, where there is a consumer and where there will be a tax, यह आप यह देख्चाँ सब लग तखज़़ लग करोगा था वो नीस क्तोईग? कहापे ख़ुवर ना वहापे तखच लगीगा तो यसकी बज़चे जीस्ती कमपनसेशचन कर ख़ाया गया कि अगर किसीवी श्टेथ का यो पहले इंदारेक टाक्स कलेक्त हो रहाता, उस में 14% का गुरोत आपको मिलेगा. तीखे, पर इज्जाम्कल की इस साल 100 रपे का कलेक्ष्यन आपका हो रहाता. तो संथर गबामेन नहीं कहा, की इस 100 रपे कापका इंदारेक टाक्स जो पहले से कलेक कर रहे थे, इस पे आपको 14% हम लोग माल लिते है, की वो गुरो करेगा. तीखे, मिलेगा सरका, हर स्तेट आपका इंदारेक टाक्स कलेक कर रहाता. तो ये माना गया की सब, हर इक स्तेट है, उसका इंदारेक टाक्स 14% से गुरो करेगा. तो अगर मान लोग एक स्तेट लाएक मादे प्रदेश है, मदे प्रदेश आपको सोर पे पहले कलेक कर रही थी, अब उसके 14% का गुरो ट्रेट उसको इंचोर क्या, की अगले साल वो किता कलेक करेगी, 114 रूपीस, लेकिन अगर वो ये चीस नहीं कर रही, तो उसको कमपन्सेट क्या जाएगा, उसको कमपन्सेट क्या जाएगा, मतलब सबस जीस्ती नहीं रही रही रही, तो मदे प्रदेश किता कलेक करती, 100 रूपीस इस साल और अगले साल, अगले साल, लग़ब 14% का ग्रोट्रेट है, तो अगले साल वो किता कलेक करती, 114 रूपीस, अब मार लोस को जीस्ती की बजज़ से यासा आरा है, 110 रूपीस, तो 4 रूपीस को असको लोस हो गया, तो ये विदाओ जीस्ती उसके पास पन्ने अवरेट, अब जीस्ती की आदे की बजज़स को 110 रूपी आरा है, तो 4 रूपी तो चो लोस होग, इस लोस को कमपन्सेट करने के लिए, ये कहा गया कि अगर जीस्ती की आने से, अपका, जो रेवे लिए है, इंदरेक तक्स का, अगर, उो कम होता है, इस से कम होता है, अवरेट की तम आना गया, लक्वब 14% के ग्रोट्रेट, तो मान के चलेगे, की 14% के ग्रोट्रेट होगा, अगर उस कलेच्छन से कम आगा, तो आपको कमपन्सेट की आजाएगा, आपको जीस्ती कमपन्सेचन, इसको हरेक स्तेट को, नीए थी में के जLAUSEवाग के आपको, lime 4% का ऐशाऊents गर नहीं के वद्रा supervision के आपको, आपका के आप्को खीगे कर रहा गे, असके कृत ख़ाएख फरेद्हे� fish to cut, उसके वेखन kept itcome path of constitution Trust house, अब ख़ेख पहो, आपको आपको शीशॉ, सु ऴिासि करनातzyć था और सब और hocane kibha, to usku Saxony to sell क्त आपूप कमंपन्सेक्चियचिचिया लिए joaWasakyaaturek laa ढब अपरती। ऍंनावडौग, SBSkini koثر flawsa. घ меш आप बनामे प्रये थोप। ta bitter ka due to lagse hit the अपर प्रपी. grille. than the amount will come with the GST due to the GST coming there is some loss, they will compensate for it for the next 5 years ok so this is about GST compensation says that if the GST does not come then your revenue is being generated that will grow from 14% this is what we are saying, it cannot grow but on an average, it is predicted that your indirect tax it grows by 14% अपका जो पहले कलेक्षन हो रहा ता उस पे 14% से कम हो रहा है अब उसको अपको कमपन्सेट किया जाएगा अपके लिकिन पाट्दमिक से में क्या हूँँँँ क्रीसिस किसाम है तो इंगरेक टाक्स पुर खतम अपको कमपन्सेट कि क्रीसिस पाट्दमिक जित्रा बराजा जाएगा जो दीजा नोन आस ब्लाक्स्वान इबन्स इसके ले कोई प्रपेर नहीं होता है किया तो सेंटर प्रमिस किया ता बर सेंटर वस कनसिटरिं की नोमल हलात रहेगा आसे क्रीसिस के ताईंपे पु नोस आसी तो कल कुछ भी हो सकता है यस तो सेंटर नहीं कहा कि आप नोड प्रस्पुन्सबल तो सच काईन अप वीवेंस की कल को परप्ष्वेख आजाएग, पाट्दमिक आजाएग, उस केस में 14% ब्रोग करेगा भो नоссाई, लुग, क्रケपी वो प्तानब अत्रregierungव चग्रेज़िस तैकति, यम क्र समझेअ dise Polit आप चोगोच बन नुस, मंत कब मेंसाने के ईक को वर अशцыे प्रापण डकए तूत होतेगे उसA आपको पास कर लेंगे तो संटरने किया किया? स्टेटग को क्या चाईय क्या चाएये ता? अमट संटरने कहाँ त्या, पर आप मगगखे इस पुट्र आप उस मोन्गश्रीष किया अपको भी सच्चिृनों कुलोग, thanさa pash kele यह यह त्या, यह नेंगे को यह you take loan on our behalf you take loan on our behalf why? because the loan that the center gets is cheap as compared to the state because the center has bargaining power and the loan that the center has is a lot so if the center is getting the loan at 2% then the state will get the loan at 5% so the state will say that its fine we will also take some loss but you take the amount of the loan and you take the loan and give it to us so the center took the loan of 100 rupees on a back to back basis we transferred the state so the state was happy that the loan was cheap now how will the loan be paid so for this the compensation was being assessed the compensation was being assessed initially it was for 5 years that is for 2070 to 2020 a special type of assessment was applied we will compensate with this money the interest has been increased up till 2026 so now till 2026 the GST compensation will be assessed and with this money we will fund the interest of the states so till 2026 the money of the states will be given to the states whoever has taken the loan he will be able to repay the interest so that was a very well efficient way of tackling the issue it has shown that it is ready to compromise it is ready to act and that's why the government has supported the successful resolution of this whole crisis that who will pay and other things like okay then enhance the limit of borrowing of the states and incentivize for reforms during the pandemic the states were told okay now you can take more money the limit was 3% of GDP but the center said that the states are okay so see what the limit was 5% of GDP in F by 21 4% in F by 22 and 3.5% in F by 23 so now the central government has agreed that states should take more loan they can take more loan but what was said here is that there is one condition that if you are taking more money you are taking 3% of GDP you are taking 5% but the 2% extra that you are taking where you will spend it there are some conditions for that see this additional borrowings can only happen like in F by 2021 when the center said that states can take 5% of GDP their loan but that is subjected on a condition that state will implement some reforms reforms like one nation one ration card ease of doing business urban local body reform and power sector reform that is dis-forms reform so this is the right thing you take the money but you have to spend it in the right place this is not the way to start again this way the center has convinced the states and the spending of the states has also brought a qualitative shift during the pandemic the center allowed the state to take more money but you have to spend it in some reforms similarly another reform that the center brought that the center has brought for its capital expenditure it gave a 50 year interest fee loan for 3 years when the pandemic came the center gave a 10,000 crore loan to the state 0% interest free for 50 years but what do you have to spend 10,000 crores in the capital infrastructure so in this way the financial federalism the fiscal federalism of the center state the center has handled it it has possibly handled it it has first of all resolved the issue of GST compensation second it has ensured that the states should spend extra money but not on subsidies but not on freebies rather on capital infrastructure because it is very important that you know the crisis of Sri Lanka this was the problem it was spent on a lot of subsidies and what happens is your debt becomes unsustainable and your economy collapses that is why the government throughout this pandemic has done has taken many steps to ensure that the quality of spending your reform can be brought then let us understand the depth profile of the government so the depth profile of the government what is the depth profile of the government this is what you see the depth of the government the percentage of union government so you see here in FY4 this was done a lot after this it has started to decline why? last class what was in 2003 FRBMAC we talked about the structural reforms right because of that this is one of the fiscal deficit so that is different let us talk about the depth to GDP ratio so the total depth of the government the fiscal deficit is basically how much is taken in one year that is 3.5% of GDP 6.4% of GDP so how much is taken in one year and this value is how much is the total debt the total debt is not of one year the total debt of the government divide it from GDP 59.2% so 59.2% of GDP this is the total debt of the government okay so do not confuse between fiscal deficit and this union government's depth to GDP ratio okay during the pandemic this increased 59.2% but now it has started to decline right so this is the first one now come to total liability what is the total liability of the government this kind of graph you will get to see that how much is the total liability of the government so the liability of the government is of 3 things first one is the public debt which the government has taken so that is the liability second public account in public account for example like our PPF cuts so where does PPF go? it goes to any government so what is the liability of the government because government has to give that money back to us when we retire so all this money which are deposited by government but ultimately the government has to pay back the money to the people so where do we keep it in public account this is known as public account and what is the public debt which we have taken money from the market total money which we have borrowed this is known as the borrowed money okay and this is not a borrowing money you have deposited it from something so here simply it is public account and third is the extra budgetary resources extra budgetary resources for example I am a government I have to spend 1 year so to spend I will have to take a loan if I take a loan then the fiscal deficit will increase fiscal deficit will increase so people will start to be skeptical opposition will protest that why have you increased the fiscal deficit so what does the government do here what does the government do here what does the government say the government will say to the BPSL that you take a loan it is showing in its account it is not showing in our account but it is taking a loan on whose request on our request so these are known as extra budgetary resources which are not accounted in budget and because of this we do not even know how much the fiscal deficit is because government's loan is not taking government's department is taking PSE loan it will come in its account but it will repay the loan so that is why it is known as extra budget free that is why it is mentioned in the budget this is being done outside the budget and by that the government hides the real fiscal deficit so that is also the liability so this is three liability public debt this has internal debt which we are taking domestic money and an external debt which we are taking from outside then public accounts and then extra budgetary resources add these three think about it 65.27 lakh crores in FY16 today it has doubled to 134 lakh crores this is the problem when the liability increases then the problem can come and see how the liability is going forward although it will consolidate in the future in the future as per the government tax correction will be more so the loan will be less but if it is breached more so these are the liabilities public debt is the internal debt or external debt then public account and then extra budgetary resources this is the liability of the entire government the government has to hide it somehow but the survey says the entire debt profile the public debt of the government this is quite right so there is no problem let us see India's public debt profile is relatively stable and it is characterized by low currency and interest rate so India's debt that is fine there is no problem external debt is only 4.9% our external debt is 6.59 lakh crores very less as compared to internal debt 115 lakh crores so external debt we have taken money from outside so the problem is that if the currency depreciates then we saw in the last lecture that if the currency depreciates then we will face more problems to repay the loan and Indian currency is very volatile generally depreciates so if we have a lot of money from outside like what is the problem of China Russia, Sri Lanka this is the problem external debt is very high and for external debt you need a dollar for payment prices but here if you have a domestic loan then there is no problem so what is good in India is that our external debt is only 4.9% means it is 5% so if we have 100 rupees then external debt is only 5% so there is no problem similarly the debt is sovereign but generally we have not taken any loan from outside we have taken loan from the government sovereign in nature there is no problem similarly the floating internal debt our internal debt floating is very less total is 1.7% floating means the one whose interest fluctuates for example if I take a loan of 50 years then will I take a fixed interest rate no, it can be in the future it can be in the future then I have to give interest floating rate in this interest rate fluctuates so floating internal debt our debt is very less as compared to other things so our interest rate fluctuates similarly the long term securities are increasing as compared to short term securities short term securities means 2 years loan 3 years loan and long term means 20-25 years loan so if long term securities are increasing then we do not have a risk and if the short term is increasing then we do not have a risk because we have to pay it quickly and long term we have to pay it 20 years so I have enough time to get that resources to pay it so this is the thing proportion of external liability in the public debt this is 4.9% external debt or 95% your internal liability and also the long term securities are also increasing after this our general government total centre plus state 86.5% of GDP 60% total centre plus state total debt 87% of GDP 9.4% total fiscal deficit 4.2% total revenue deficit total central total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit total revenue deficit थिस त्रिप्रिस्टन्स लिए बहुत आप किस कोई लून? वहका नहीं लून या लीवनटी कहुत अगर ये बहुत जाड़ यह नहीं क्रीज हो जाता है अगर अगर प्सकल देफिस परसंट होजाः औगर प्रसंट होजाः यसे किसे क्या होता है लिए आतका पी इंडलेश भोड़ा दादा है यसा चात सात उस कंट्ची का जो क च्रेटितंग है वो गड़ दाता है दिके तुग मक्रोएक्वश्च्वान्टर्मटल्स है भो भिगर जाते है मैक्रो Daw is a very important objective अफ़ड़िया। अफ़डिन ती पग़ोन करने कुछ जठ रही है। लग चा्दा। थे के करने कचा थो finance ळेल रहा कि जें सचुप तो ख़ाए जाकसे। what can we do to make our depth sustainable what can we do to make our depth sustainable how can we make our depth sustainable depth sustainable means that depth to GDP ratio it is constant it means that the depth to GDP ratio in 2022 is similar to yours it is called depth sustainability so when is my depth sustainable when my depth to GDP ratio is constant it is not increasing so how can it happen there are two ways first, first if you want to reduce your depth if you want to keep the same depth to GDP ratio what can you do to reduce your depth if your GDP is decreasing you will have to reduce your depth so first your GDP was more suppose your depth was 10 and GDP was 20 so that is how much it is it is 50% our depth to GDP ratio now suppose our depth, now suppose GDP because of a pandemic so it is 10 again depth sustainable means depth to GDP ratio has to be constant so it will have to be 50% constant so now it will be 5 so in this case if my GDP is decreasing then we will have to reduce our depth so this is the first way how we can make our depth sustainable second is increase your GDP so for example our depth to GDP ratio was 10 to 20 now we have taken more depth but what we have done what we have done but what we have done to GDP is we have done it from 20 to 70 so here is the depth to GDP ratio 50% and here is the depth to GDP ratio you can see 0 to 0 and about 33% okay so look at the depth to GDP ratio what has happened to us sustainability has come but we have taken more depth we have taken 10 lakh crores we have increased our GDP so even then our depth is sustainable so there are two ways to make depth sustainable you can either reduce that depth if your economy is not performing good or second you can only focus on economy focus on your GDP do not focus on your depth take money and ensure that your GDP is increasing if your GDP is increasing then your depth to GDP ratio will become sustainable so survey says we should follow survey says we should follow this path we should follow this we should follow this approach our focus should be on GDP our focus should not be on depth so we should not think of depth consolidation our focus should be on how to increase growth how to increase growth so to increase growth you should take more money increase your depth but you should spend that money qualitatively to make infrastructure so that is a very important thing that we have to make our depth sustainable depth sustainability means depth to GDP ratio has to be constant or it has to decline it does not have to increase how we can do that we do not have to bother about depth it is on the cost and on the cost it becomes big so, the debt is not a problem where you are spending that money out of the depth that is important so survey says that you have depth low do not worry about depth or other things like that but you should focus only on the qualitative spending because if you spend qualitatively your GDP will grow at a much more higher rate than how much loan you are going to take so you are taking 10 lakhs of loan but your GDP has increased by 50% that is a good thing so that is what the survey says that for depth to sustainability you have to focus on GDP so look here depth sustainability means depth to GDP ratio remains same or reduces depth to GDP which we have seen is 60% of depth so depth to GDP we should pay for this you need positive growth interest rate differential this means that our growth growth means that the growth rate of GDP and our interest rate this should always be positive this means that the growth rate of GDP like how much is the GDP of India 8% and how much is the interest rate of our loan in the Indian economy 5% that is 3% so till the time our interest rate growth growth and interest rate subtract the value so till the time our interest rate growth and interest rate differential is positive till the time we are fine till the time our growth rate of India is 8% and interest rate is I am taking this as the example 5% till the time our means 5% growth interest rate differential is 3% so till the time this is positive till the time India has no problem till the time India has no problem so what should India do to increase growth till the time our growth will increase till the time our growth and interest rate difference will be positive so in this industry the green one is basically it is showing positive during the pandemic it was a little negative but in general India is India has a high growth growing economy India has a major fast growing economy so our GDP is very good so the difference between the two is also positive so we should focus on this so growth leads to depth sustainability GDP you will make it depth sustainable not that you make the depth sustainable so growth leads to depth sustainability but not vice versa that means depth sustainability does not lead to growth that means we should not cut down growth you are not saying that first you have to take the loan so now you take the fast loan but you increase your growth faster higher growth leads to depth to GDP ratio but lower depth does not necessarily leads to higher so our focus should not on the reduction of the growth our focus should be on the growth this focus should be on the GDP growth rate as India's economic recovery advance fiscal consolidation will happen so that is what we have talked about so basically it is saying that we should not focus on the depth we should take depth but we should ensure that we are spending the depth in a qualitative manner because that will lead to a lot of GDP and in the depth to GDP ratio if the denominator increases then your own depth to GDP ratio will decline so depth should also increase but GDP should increase at a much more higher rate because if the depth is growing from 2x then you should grow the GDP from 4x so if the denominator is growing from more rate then your own depth will become sustainable so in this way last year we also talked about the same thing and this year we also talked about the same thing and this is all about the second or third chapter where we discussed the fiscal policy so from the 5-6 summary points India has adopted counter-cyclical fiscal policies during the pandemic and the government had spent a lot of money because of that our fiscal deficit was pushed but today our fiscal deficit is consolidating and we are on the track to achieve the fiscal deficit target of this year that is 6.4% of GDP why the fiscal deficit should not be more because if the government spends more money then it will become inflation if the government spends more money if the government spends more money then what will the private people take if the private people do not get the loan then they will not spend the credit rating of the international agencies the government will downgrade and other things also happen that is why the fiscal deficit has to be within a particular limit that is why the survey says now we are moving on the path of fiscal consolidation and along with that our tax buoyancy has increased a lot our direct tax collection our fiscal deficit will also decline after that the survey says that the government has spent a lot of money during the pandemic the government has focused more on the capital infrastructure creation and it has also nudged the states to focus on capital infrastructure and that is why the growth will show its outcome in the coming years and finally the survey concludes and says that in India our focus should be on the growth our focus should not be on the debt it does not lead to growth but growth will lead to debt sustainability so our focus should be on the growth and as India is the fastest growing major economy India should not worry much about debt India should only focus about the debt so that is all about chapter 3 we will study monetary policy in our next chapter which is a big chapter in which we have adopted our policies during the pandemic how many types of monetary policy are there and other things we will discuss in the next class I hope that everyone and especially those people who are preparing for this exam have liked this chapter third of the economic survey you can stay on this channel the next chapter discussion will be coming soon and if you like this video please like and subscribe to our channel thank you and best wishes