The global economy is facing fresh challenges in the form of “adverse geopolitical turns and volatile crude oil prices”, and if these risks worsen and sustain, they can affect economic activity in India as well, the finance ministry’s monthly economic review for September said on Monday.
The report, however, highlighted that the fiscal position of the Union government remained solid with steady revenue growth and prudent rationalisation of revenue expenditure.
The government has set a fiscal deficit target of 5.9 per cent of gross domestic product (GDP) for the financial year ending March 2024.
“Revenues generated from direct and indirect taxes have exhibited steady growth and are indicative of the strength of underlying economic activity and a broadening tax base,” the report said.