The FY22 that is the current year's advance GDP estimates will be announced on Friday. These are computed and announced by the National Statistical Organization or NSO. It is the first step to budget-making. They will give a real GDP growth and a nominal GDP growth.

The budget takes the nominal GDP announced by NSO and then assumes a growth rate for FY23 and then derives the fiscal deficit as a percentage of the nominal GDP; taxes are also worked out on the basis of nominal GDP growth.

CNBC-TV18 poll sees real GDP growth number at 9.3 percent compared minus 7.3 percent last year. But the nominal GDP is expected to grow much higher because WPI inflation was high. It is expected to grow at 17 percent.

Watch the accompanying video of CNBC-TV18’s Latha Venkatesh for more details.

First Published:Jan 7, 2022 12:34 PM IST