The eight key infrastructure sectors’ growth rose 6.3 per cent in May on healthy expansion in the production of coal, natural gas, and electricity, though the growth rate is lower than in April. The production of the eight sectors grew 6.7 per cent in April.

The growth of these core sectors — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — was 5.2 per cent in May 2023. The official data showed that fertiliser, crude oil, and cement output contracted in May.

During April-May, the output of these sectors was up 6.5 per cent against 4.9 per cent in the same period last fiscal.

The production growth of coal, natural gas and electricity rose by 10.2 per cent, 7.5 per cent and 12.8 per cent, respectively, against 7.2 per cent, (-) 0.3 per cent and 0.8 per cent in May 2023.

The growth rate in the production of refinery products and steel slowed down to 0.5 per cent and 7.6 per cent.

Fiscal deficit

The central government’s fiscal deficit was only at 3 per cent of the annual estimates at the end of May.

Analysts attributed this to a slowdown in capital expenditure (capex) during the period coinciding with the Lok Sabha election model code of conduct and a hefty dividend transfer from the RBI.

The fiscal deficit — the gap between the government’s expenditure and revenue — was 11.8 per cent of Budget Estimates (BE) of 2023-24 in the first two months of the previous financial year.

For the current financial year (2024-25), the government estimates the fiscal deficit at 5.1 per cent of the GDP, or ₹16,85,494 crore.

According to data released by the Controller General of Accounts (CGA), fiscal deficit during April-May 2024 was ₹50,615 crore or 3 per cent of the BE 2024-25. In the corresponding period of the last fiscal, it was 11.8 per cent of that year’s BE.