A Country is Like a Household, Only Bigger
Just as a family checks its income, savings, and debts to judge its financial health, economists and investors check a country's numbers to judge its economic health. A few of the most watched numbers for India are described below.
GST Collections
GST (Goods and Services Tax) is the tax collected on the sale of most goods and services in India. Every month, the government releases total GST collection figures. Rising GST collections generally suggest more buying and selling activity is happening in the economy — a sign of healthy economic activity; falling collections can hint at a slowdown.
Fiscal Deficit
Fiscal deficit is the gap between how much the government spends and how much it earns (mainly through taxes) in a year. If the government spends much more than it earns, it must borrow the difference. A very high fiscal deficit, sustained over time, can worry investors about the country's long-term financial discipline, while a controlled, well-managed deficit used for productive spending (like building infrastructure) is generally viewed more positively.