New Delhi, May 30 (IANS): The general government deficit and debt moderated to 9.4 per cent and 86.5 per cent of GDP, respectively, in 2022-23 from the peak levels of 13.1 per cent and 89.4 per cent in 2020-21 respectively, the Reserve Bank of India has noted in its annual report for 2022-23.

"While committing to credible fiscal consolidation, the government has led the revival in investment cycle through augmented capital expenditure, recognising its multiplier effects by crowding-in private investment and lifting the economy's growth potential," it said while commenting on government finances.

Going forward, fiscal consolidation will need to be sustained to rebuild policy buffers and ensure debt sustainability, it underlined.

"Continued thrust on digitisation could aid in greater formalisation of the economy and thereby higher tax base, generating the necessary resources to undertake developmental expenditure," it suggested.