Fiscal balances improved despite rise in public investment: Eco Survey

The fiscal balances of the central and state governments taken together have improved progressively despite expansionary public investments, according to the Economic Survey 2023-24.

Tax compliance gains driven by procedural reforms, expenditure restraint, and increasing digitisation helped India achieve this fine balance, according to the Economic Survey 2023-24, tabled in Parliament by Finance Minister Nirmala Sitharaman on Monday.

The external balance has been pressured by subdued global demand for goods, but strong services exports largely counterbalanced this, it added.

Noting that global output is now somewhat more resilient than in 2022, the pre-Budget document said inflationary pressures are shrinking, and trade is set to recover, should there be no further geo-political shocks or flare-ups.

However, the survey noted that chances of geopolitical disturbances and conflicts have only gone up in recent times.

The survey said India's calibrated response to the pandemic on the