Terming FY21 as an 'exceptional year', Motilal Oswal Financial Services (MOFSL) in a report say Government spending grew 2 per cent last fiscal.
In FY21, India's real GDP contracted 7.3 per cent marking the worst fall in the past seven decades.
"Our calculations suggest that while real spending by the private sector fell 10 per cent in FY21, government spending grew 2 per cent in real terms."
Consequently, while the private sector deducted 8.7 percentage points from the real GDP growth, the government added 0.3pp in FY21.
"Of this, real government investments declined for the second consecutive year, while real consumption grew 2.9 per cent YoY in FY21." Besides, it cited that combined fiscal deficit was at an all-time high of 13.3 per cent of GDP in FY21.
"Our calculation of the combined fiscal deficit of the center and states indicates it rose to 13.3 per cent of GDP in FY21, against a combined fiscal deficit of 7 per cent of GDP in FY20."