(18 December 2023) Government Data Roundup: Dynamic Ground Water Resource Assessment and State Finances (Budgets) Reports Among Those Released Recently

In this 44th edition of fortnightly government data roundup, we look at Dynamic Ground Water Resource Assessment Report and State Finances- A study of budgets 2023-23 by RBI. In addition, we also cover the regular monthly reports on IIP & CPI.

In this 44^th edition of fortnightly government data roundup, we look at Dynamic Ground Water Resource Assessment Report and State Finances- A study of budgets 2023-23 by RBI.

Among the monthly and quarterly reports, the Index of Industrial Production for October 2023 and CPI for Rural, Urban, and Combined for November 2023 are released. In addition, the RBI’s annual Survey on International Trade in Banking Services, 2022-23 was also released this fortnight.

• For October 2023, the Index of Industrial Production (IIP) with base 2011-12 stood at 144.7. The sectoral indices of Industrial Production for the Mining, Manufacturing, and Electricity sectors for October 2023 stand at 127.4, 141.8, and 203.8 respectively. The IIP for these sectors during October 2022-23 stood at 112.6, 128.5, and 169.3 respectively. The Electricity sector grew the most, followed by Mining and Manufacturing in October 2023 over the corresponding period of the previous year.
• The All-India CPI-Rural for October 2023 stood at 187.0 points and for Urban, it stood at 183.4. For November 2023, the provisional index for rural and urban stood at 188.2 and 184.2 respectively. These represent an increase compared to the November 2022 values, which stood at 177.8 and 175.0 respectively for rural and urban areas. The combined provisional CPI for November 2023 stood at 186.3 as compared to 176.5 in November 2022.

Brief about the report:

Periodic evaluations of Ground Water Resources Assessment are conducted collaboratively by State Ground Water Departments and the Central Ground Water Board. These assessments operate under the guidance of State Level Committees on Ground Water Assessment at the state level and are overseen by the Central Level Expert Group. These joint initiatives were previously undertaken in 1980, 1995, 2004, 2009, 2011, 2013, 2017, 2020, and 2022. The assessment process includes calculating the dynamic ground water resources or Annual Extractable Ground Water Resource, Total Current Annual Ground Water Extraction (utilization), and the percentage of utilization concerning the annual extractable resources (stage of Ground Water Extraction).

Key highlights of the report:

• Compared to the 2022 assessment, the total count of assessment units in the nation has dropped from 7089 to 6553. Among these 6553 units (Blocks/Mandals/Talukas), 736 units across various States/UTs (11.23%) have been labelled as ‘Over-exploited,’ indicating a surpassing extraction of groundwater over its annual replenishment.
• Additionally, 199 units (3.04%) are classified as ‘Critical,’ depicting a groundwater extraction stage between 90-100%. There are 698 units (10.65%) categorized as ‘Semi-critical,’ with a groundwater extraction stage between 70% and 90%, and 4793 units (73.14%) marked as ‘Safe,’ where the groundwater extraction stage is less than 70%.
• The total annual groundwater recharge has risen from 437.6 billion cubic meters (bcm) to 449.53 bcm, with significant increases observed in the states of West Bengal, Assam, Telangana, Chhattisgarh, Karnataka, Gujarat, and Bihar.
• Comparing the Ground Water Resource Assessments of 2023 to 2022, the annual extractable resource has also increased from 398.08 bcm to 407.21 bcm.
• Groundwater extraction has slightly risen from 239.16 bcm to 241.34 bcm, while the overall stage of groundwater extraction has slightly decreased from 60.08% to 59.26%.

Brief about the report:

The yearly release by the Reserve Bank, named “State Finances: A Study of Budgets 2023-24,” presents insights and information on the fiscal status of State governments in India for 2021-22 (actuals), 2022-23 (revised estimates/provisional accounts), and 2023-24 (budget estimates). The focus of this year’s report revolves around ‘Revenue Dynamics and Fiscal Capacity of Indian States.’

Key Highlights:

• The positive strides made in State finances during 2021-22 persisted into 2022-23, as the collective States managed to keep their gross fiscal deficit (GFD) at 2.8 percent of the gross domestic product (GDP), staying below the estimated budget for the second consecutive year. This achievement primarily stemmed from reducing the revenue deficit.
• States are looking ahead to maintain prudent fiscal strategies for 2023-24, aiming for a consolidated GFD of 3.1 percent of GDP.
• Besides almost eradicating the revenue deficit, there’s a planned surge of 42.6 percent in capital outlay for 2023-24, reaching 2.9 percent of GDP.
• Even though States project a decline in total outstanding liabilities to 27.6 percent of GDP in 2023-24 from its peak of 31.0 percent in 2020-21, it’s anticipated that these liabilities might persist above 30 percent of gross state domestic product (GSDP) for several States.
• While the tax efforts are strong enough, further improvements can be made. For non-tax revenue, the states are suggested to revise user charges on utilities like electricity and water, royalties, and premiums from mining, and also improve the financial management of their public sector undertakings (PSUs).

Brief about the survey:

This yearly survey delves into international financial activities, examining fund-related banking services such as deposits and credit, alongside financial support services that carry visible or underlying charges or commissions. It scrutinizes these services offered by foreign branches, overseas subsidiaries (including joint ventures) of Indian banks, and foreign banks operating within India. The latest survey of 2022-23 encompasses 14 Indian banks with branches or subsidiaries abroad and 44 foreign banks with branches or subsidiaries within India.

Key Highlights:

• Employee strength saw a jump of 0.5% in foreign branches and a significant 6.2% in subsidiaries during 2022-23. Meanwhile, foreign banks in India scaled back their branches and workforce.
• Indian banks thrived overseas, witnessing increased deposits and lending activities. Foreign banks’ balance sheets in India surged by 5.7% in US dollar terms.
• While the income-to-assets ratio for Indian banks’ overseas branches reached 3.9% (up from 1.6% in 2021-22), it trailed behind the 6.9% ratio for foreign banks in India.
• Though interest rates soared, fee income took a dip in 2022-23. Foreign banks in India dominated with a 11.5% share, while overseas branches of Indian banks stood at 7.0%, largely from credit and trade finance services.
• Notably, Indian bank branches in the UAE topped fee income charts, followed by those in the UK, Hong Kong, and Singapore.