Tuesday, 21 June 2022

Current Account Deficit(CAD)

 Fiscal deficit:

  • The amount of money that the government has to borrow in any year to fill the gap between its expenditures and revenue.
Capex
  • money spent towards creating productive assets such as roads, buildings, ports,...
Current Account Deficit(CAD)
  • Import and export of goods - "Trade Account"
  • Import and Export of Services-" Invisibles account"
A widening CAD tends to weaken the domestic currency. 

Updates:
  • CAD narrows to 1.5 % of GDP in Q4
  • Heavy FPI outflow
  • Fiscal deficit touched 12.3% of FY23 
  • External debt rose $47.1 bn to $620.7 bn in FY22 



Source: The Indian Express

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