Revenue expenditure to GSDP ratio increased mainly on account of the Sixth Pay Commission award. However, capital outlay to GSDP ratio has declined (Table 6). Table 6 Receipts and expenditure  Financial developments It is important to have a well-functioning financial system for sustainable economic development.
While the Reserve Bank has been actively engaged in the development of the financial sector, it has stepped up its efforts in recent years to enhance the penetration of the formal financial sector and promote financial inclusion with a view to improving the well-being of our society. Let me first broadly outline the financial fabric of ANI.