Two records and a turn

The finance minister's ability to effect a steady rise in capex is more significant than her two records on deficit management

On May 31, the Controller General of Accounts released the provisional numbers for the Union government’s 2021-22 Budget. Apart from confirming a tax revenue surge and a lower deficit, they also showed how Finance Minister Nirmala Sitharaman has notched up yet another record in the way she has managed the government’s finances. In addition, they pointed to an important directional change in the government’s expenditure pattern.

Her first record was achieved in 2020-21, when the Union government’s fiscal deficit widened to 9.2 per cent of gross domestic product or GDP — marking the highest single-year increase of 4.6 percentage points in