Budget Countdown: Govt estimates current year GDP growth at 9.2%

Budget 2022 countdown has begun with the Govt releasing the first advance estimate for growth for the current year. The growth in real GDP during 2021-22 is estimated at 9.2 per cent as compared to the contraction of 7.3 per cent in 2020-21.

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The rise in economic growth is lower than the 9.5 per cent growth estimated by the Reserve Bank of India (RBI) and presumably accounts for the possible hit in Jan-March to growth due to the spread of Omicron

Advance estimates are released to provide the numbers to the finance ministry to work on the Budget for the next financial year. The Budget takes the nominal GDP announced by NSO and then assumes a growth rate for FY23; taxes are also worked out on the basis of nominal GDP growth.