India’s fiscal deficit stood at 59% of budget estimate during Apr-Nov 2022 as compared to 46% during corresponding period in previous fiscal year. In absolute terms, the fiscal deficit stood at Rs 9.78 trillion. For the current fiscal year, The government has budgeted a fiscal deficit to be 6.4% of the GDP.
During Apr-Nov 22, net tax revenue came in at Rs 12.24 trillion which is 63.3% of BE FY23. Non-tax revenue was at Rs 1.98 trillion or 73.5% of BE. So far net tax direct collection rose by 24.26% on a yearly basis.
Domestic advance tax collections during Apr-Dec FY2022-23 stood at Rs 5.21 trillion against advance tax collection of Rs 4.62 trillion for the corresponding period of the FY 2022, showing growth of 12.83%.
India’s nominal GDP growth rate has been estimated to be at 11.1% as per Union Budget FY23.
India Consumer inflation -Domestic inflation mitigated to 5.72% in Dec 22 from 5.88% in previous month. During the month, food inflation stood at 4.19% while core inflation came at 6.1%.
Government bonds, SDL and OIS yield movements
10-year benchmark 7.26% 2032 yield declined by 7 bps to 7.30% while 6.54% 2032 yield decreased by 8 bps to 7.32%. The 5-year benchmark bond, 7.38% 2027 yield decreased by 15 bps to 7.13%. 3-year benchmark 5.22% 2025 yield decreased by 17 bp to 6.87%. Long-term paper, 7.40% 2062 yield decreased by 9 bps to 7.37%.
The spread of 10-year bond over 5-year bond declined to 17 bps from 8 bps as compared to the previous week. The 15-year benchmark over 10-year benchmark spread decreased to 7 bps from 8 bps while the 30-year benchmark over 10-year benchmark spread stood unchanged at 7 bps on a weekly basis.
Average 10-year SDL auction cut-off rose to 7.63% from 7.62% in previous week while spread stood unchanged at 31 bps.
On a weekly basis, 1-year OIS yield declined by 13 bps to 6.60% while the 5-year OIS yield decreased by 22 bps to 6.21%.
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